Landmark eyes final closes on PE and RE funds

The secondaries firm may also launch products in real assets and credit, according to parent company Old Mutual Asset Management.

Landmark Partners is expecting to hold final closes on its latest private equity and real estate funds in the first quarter of next year and may launch secondaries products in credit and real assets.

The Simsbury, Connecticut-headquartered secondaries firm will end fundraising for the two vehicles at the end of March, Aidan Riordan head of affiliate management at parent company Old Mutual Asset Management, said on a third quarter earnings call on 2 November.

“The expectation is that the two funds that are in the market will end their fundraising at the end of Q1 2018,” said Riordan, an executive vice-president at OMAM who is responsible for the firm’s portfolio companies. “From a timing standpoint that gives you a sense as to how far along they are and from a directional standpoint, they’re very much in line with the expectations that we had given the targets for both of those funds.”

Landmark launched its 16th private equity secondaries fund, Landmark Private Equity Secondaries Fund XVI, in May 2016 with a $4 billion target and a $4.7 billion hard-cap, according to PEI data. The fund had collected $224 million as of May, including $200 million from New York State Common Retirement Fund.

The firm’s eighth real estate secondaries vehicle, Landmark Real Estate Partners VIII, launched in the second half of last year with at $2 billion target, as Secondaries Investor reported. It has attracted investors such as Minnesota State Board of Investment, which committed $150 million, according to PERE data.

As secondaries activity spreads to assets classes such as real assets and credit, OMAM might help Landmark build products in these segments, Riordan added. Landmark has previously made secondaries investments in these asset classes through separately managed accounts or through carve-outs from existing funds, he said.

OMAM paid around $240 million for a 60 percent stake in Landmark in June last year after the secondaries firm’s previous owner, Religare Enterprises, announced it was selling its stake back to management. Landmark’s management team retained the remaining 40 percent.

Landmark’s assets under management have increased by around 52 percent since OMAM’s acquisition, according to the earnings results.

Landmark declined to comment.