Landmark closes largest ever real estate secondaries fund

The firm's eighth dedicated real estate fund closed above target on $3.3bn and is already 42% deployed.

Landmark Partners has held the final close on the largest fund yet raised for real estate secondaries.

The oversubscribed Landmark Real Estate Fund VIII has raised $3.3 billion, nearly double the amount raised for the previous fund in the series, according to a statement from the firm. Fund VIII was 42 percent committed across six transactions at the time of final close on 30 March, the statement noted.

“Landmark estimates real estate secondary transaction volume reached $6 billion in 2017, and LREF VIII’s deployment is off to a strong start,” said Francisco Borges, chairman and managing partner. The fund attracted commitments from more than 150 investors globally, he added.

Fund VIII launched in the second half of 2016 with a $2 billion target, according to data from sister publication PERE. It surpassed this target last December, collecting at least $2.4 billion after around 14 months in the market.

Investors in the fund include Arkansas Teacher Retirement System, which committed $25 million, Connecticut Retirement Plans and Trust Funds, which committed $65 million, and New York State Common Retirement Fund, which raised $150 million.

Landmark is targeting a 14-16 percent net internal rate of return for Fund VIII, Secondaries Investor reported. It has a 1 percent management fee, 8 percent preferred return and 12 percent carried interest.

The fund’s predecessor, Landmark Real Estate Fund VII, closed on $1.6 billion in April 2015, according to PERE data, after around 14 months in market.

Real estate accounted for 14 percent of the $58 billion in deal volume last year, according to Greenhill Cogent’s latest yearly report.