The good news is that commercial real estate funds focused on Europe remain an integral part of investor portfolios. Repricing of assets may be occurring, credit conditions are challenging, at best, and investment activity is off significantly. But it remains possible to raise money and launch funds in the current environment even as investors are more selective and cautious.

Clouds and rain appear to have spoiled the earthly paradise enjoyed by fund sponsors and investment managers for so many years. Rising allocations, cheap and plentiful credit, and eye-popping returns made it almost too easy to attract loads of money. For a spell, investment managers with even minimal repute and speed-dial could quickly raise money for a new fund touting virtually any strategy. And if there were a momentary shortfall or if an investment opportunity presented itself before the fund reached its marketing goal, there were eager financial institutions willin