Davis Polk partner and Investment Management practice head Leor Landa was quoted in Law360 discussing real estate fundraising activity in the first half of 2025.

Leor noted that transactional activity in the larger mergers and acquisitions market and private financing markets is picking up, and that the increase in deals will create liquidity for investors, which could fuel more movement in fundraising.

“As those transaction levels continue to increase, and as liquidity keeps feeding into the system, we’re expecting pretty near-term, knock-on effects for fund formation,” Leor said. “We’re already starting to see it. We’re starting to see bigger-ticket sizes, starting to see closings happening at a higher clip.”

He added that there are a lot of reasons for investors to be excited about real estate in particular. “In addition to traditional development and multifamily and commercial development, when you look at things like data centers, there is a lot of capital that’s going to be flowing into those spaces,” he said. “Real estate managers are going to take advantage of it.”

Leor also pointed out that the trend of fund sponsors agreeing to more customization requests from investors is an industrywide phenomenon, occurring beyond real estate fundraising. He noted that several years ago, managers would typically only agree to customization if the investor was making a significant commitment, given the hefty administrative cost of taking such requests and that the threshold for how big a capital commitment has generally lowered in recent years as the markets got tighter.

“It’ll be interesting to see as the markets, as fundraising returns, and as the funding cycle moves upwards, whether that threshold for customization starts to push back up,” he said.

“Real Estate Fund Sponsors Loosen Reins In Sluggish Market,” Law360 (September 3, 2025) (subscription required)

Copy link to share post