Real-Estate Funds Have a Problem: Too Much Cash

As deadlines approach for spending investor money, fund managers face challenges finding profitable buildings to buy

By Konrad Putzier

March 26, 2019 9:30 a.m. ET

Private real-estate fund managers, sitting on record amounts of cash, are finding it increasingly difficult to spend all that money within the deadlines they promised investors.

Funds with fixed lifespans generally promise investors they will spend the money they commit within three to five years. But as of last June, closed-end real-estate vehicles launched in 2013 and 2014 still held $24.8 billion in dry powder, capital committed by investors that has yet to be spend, according to research and data firm Preqin Ltd.

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