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Goldman gathers at least $330m for RE secondaries

The fund's predecessor, the 2016-vintage, $894m Vintage Real Estate Partners, had achieved net IRR of 35.9% as of 31 December.

Goldman Sachs Asset Management has made major strides in fundraising for its second real estate secondaries vehicle.

The firm has raised at least $336 million for Vintage Real Estate Partners II through an onshore- and offshore-vehicle, according to two filings with the Securities and Exchange Commission. The filings are dated November 2018 and March 2019, respectively.

This figure accounts for only part of what’s been raised so far, Secondaries Investor understands.

The fund’s 2016-vintage predecessor Vintage Real Estate Partners raised $894 million, according to fund documents seen by Secondaries Investor. That fund had made a net internal rate of return of 35.9 percent and a multiple of 1.3x as of 31 December.

In August, Goldman and Landmark Partners acquired $200 million of real estate fund stakes from Colony Capital as part of Colony’s exit from the real estate secondaries business, Secondaries Investor reported. Goldman bought at least 80 percent of the portfolio. In June Goldman used one of its Vintage secondaries funds to buy part of property developer TriGrant from TPG’s real estate arm in a deal valued at around €300 million.

Goldman is also in market with its latest flagship private equity secondaries fund Vintage VIII, Secondaries Investor revealed. It is targeting $7 billion.

Real estate secondaries dropped 12 percent to $5.3 billion in 2018 from $6 billion the year before, according to data from private equity and real estate secondaries firm Landmark Partners, reported by Secondaries Investor. This was largely due to the lack of $1 billion-plus portfolio sales during the year.

Goldman Sachs did not wish to comment on the fundraise.