Ares Management’s secondaries business, Landmark Partners, has raised over one-third of its target for its latest real estate secondaries fund.
Landmark Real Estate Partners IX has reached $1.47 billion, according to two filings with the US Securities and Exchange Commission. The vehicle is targeting $3.5 billion, according to Secondaries Investor data.
Predecessor Landmark Real Estate Partners VIII closed in 2018 on $3.3 billion, above its $2 billion target.
With Fund IX, Landmark aims to benefit from the increase in GP-led dealflow. The firm invested $2 billion in “partnership recapitalisations” in the real estate sector over the space of five years, according to documents prepared by the Minnesota State Board of Investment in 2021, which committed $100 million.
A spokesperson for Ares declined to comment on the fundraise.
Landmark recently wrapped up fundraising for its latest private equity secondaries fund on a significantly lower amount than the vehicle was targeting, Secondaries Investor reported.
Landmark Equity Partners XVII held its final close on 31 October, raising around $2.4 billion. The fund launched in July 2020 and was initially targeting $6 billion, according to Secondaries Investor data.
Real estate was Landmark’s strongest-performing business when Ares agreed to acquire the firm in March 2021, generating a 25 percent-plus net internal rate of return since inception as of September, according to an investor presentation. This compares with 15 percent-plus for private equity and 10 percent-plus for infrastructure.