AEW Adjusts Deployment Strategy For $1.8B Real Estate Fund Amid Market Shifts
AEW Capital Management is recalibrating its deployment strategy for the $1.8 billion North American real estate fund, which it closed in July 2025 amid favorable market conditions. Managing Director Tony Crooks noted that rising interest rates and increased debt availability have slowed transaction activity, making deal sourcing more selective. The firm has deployed about 55% of its capital so far, with a focus on senior housing, multifamily, industrial, and retail sectors. Senior housing remains a key area for AEW due to reduced supply and strong demand, where the company acquired 16 properties in 16 months. However, Crooks highlighted that opportunities are becoming more competitive as capital flows into the sector. In contrast, the multifamily market faces oversupply issues, with prices down between 15% and 30%, limiting potential for outsized returns. AEW is also exploring distressed plays in industrial real estate due to weak tenant demand from previous years but expects improved leasing activity going forward. The firm plans new developments across multiple sectors and intends to launch a follow-up fund within the next year.
Topics: investment strategy market conditions private equity funds real estate