Macro factors are only partly what’s making real estate fund raising difficult for some general partners. Funds Global Intelligence research shows poor data quality is also impacting success.
In partnership with Vistra Fund Solutions, Funds Global Intelligence surveyed 166 professionals who work at real estate investment firms.
A key finding was that 64% of the respondents say data quality had contributed either to abandoning a strategy or to restricted capital raising. (Some 37% say data quality caused a strategy to be abandoned and 39% said it restricted capital raising).
A number of survey respondents offered anonymous commentary about this challenge.
“Capital raising is much harder when the data presented to investors isn’t trustworthy or doesn’t paint a clear, accurate picture of the business,” said one.
A further respondent commented: “Data quality issues made it challenging to present accurate financial metrics and projections to investors. Without reliable data, it became difficult to build investor confidence, which restricted our ability to raise capital effectively.”
*‘Data at a crossroads: How quality, governance and AI are reshaping real estate investment management’ is a Funds Global Intelligence report featuring a quantitative survey among real estate investors and supporting interviews with firms and organisations including Activum, Patrizia, Schroders Capital and INREV.
Download the full report here
