Goldman raises more than $1bn for RE secondaries

Goldman Sachs Asset Management is making headway with its latest real estate secondaries fund.

The firm has raised $1.198 billion for Vintage Real Estate Partners II from 853 individual investors, according to a filing with the Securities and Exchange Commission. This does not account for the total amount already raised and does not represent a final close, Secondaries Investor understands.

Vintage II held an interim close on $330 million in March last year, having made a first sale in November 2018, Secondaries Investor reported. The target of the fund is not clear.

Predecessor Vintage Real Estate Partners, a 2016-vintage, raised $894 million, according to fund documents seen by Secondaries Investor.

Real estate deals Goldman has backed include the acquisition of $200 million of real estate fund stakes from Colony Capital in 2018. The acquisition, alongside Landmark Partners, was part of Colony’s exit from the real estate secondaries business. That year Goldman also bought 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 private equity secondaries fund Vintage VIII. As of February the fund had raised more than $8 billion, Secondaries Investor reported. It has yet to hold its final close.

Real estate secondaries volumes reached a three-year high last year, according to data from Landmark. Some 127 transactions, representing approximately $7.2 billion of net asset value, closed or were placed under contract in 2019, the firm noted.

GP-led deals in the asset class rose 86 percent to $3.9 billion, the first time they have accounted for more than half of annual transaction volume.

Goldman Sachs declined to comment.