Aquilius targets $700m for second RE secondaries fund

The predecessor fund has been fully deployed to LP and GP-led real estate secondaries transactions across the Asia-Pacific region.

Singapore-based real estate secondaries firm Aquilius Investment Partners is targeting $700 million for its sophomore offering, Secondaries Investor has learned.

The fund aims to hold a first close in the first quarter of this year, according to two sources familiar with the matter.

Aquilius is one of the few secondaries investors with dedicated capital for real estate secondaries opportunities in the APAC region.

In late 2022, the firm closed its debut fund, AIP Secondary Fund I, which raised $400 million from a mix of global LPs, including sovereign wealth funds, endowments and family offices, Secondaries Investor previously reported. It also raised an additional $200 million of managed accounts for co-investments.

Fund I has been invested in LP and GP-led real estate secondaries transactions across the Asia-Pacific region. It has been fully deployed into approximately a dozen deals, Secondaries Investor reported in early January.

Aquilius was founded in 2021 by managing partners Bastian Wolff, who spent 15 years at Partners Group, including most recently as head of Asia private real estate; and Christian Keiber, whose previous role was managing director in Blackstone’s Southeast Asia and Australia private equity team.

The two founding partners launched the firm because they saw “an unprecedented growth in the private markets in Asia-Pacific”, Wolff told Secondaries Investor last year. “There’s been a lack of dedicated secondary capital in this region…and then pair that with a high complexity and [the] disintermediated nature of the market, we realised that for investment managers that can really invest in the resources and roll up their sleeves, there is actually a real opportunity here in Asia-Pacific secondaries.”

The APAC real estate secondaries, in particular, will likely expand as more European and North American investors pivot back to their home countries, Wolff and Keiber told Secondaries Investor at the time.

Secondaries activities in Asia have been impacted recently by diminished investor appetite for China. APAC asset activity ­– defined as any LP selling APAC positions, or an APAC GP-led – reached $6 billion in 2022, down from $7 billion in 2021, according to data from Greenhill. Meanwhile, APAC seller volume – APAC-based LPs selling any positions, APAC GP-leds, or an APAC-based asset management company sale or spin-out – reached $8.5 billion, down from $11 billion in 2021.

Aquilius declined to comment on fundraising activities.