Neuberger Berman has broken the back of fundraising on its debut real estate secondaries vehicle.
The New York-headquartered firm has raised $407.2 million for its NB Real Estate Secondary Opportunities Fund from 133 individual investors, according to a filing with the Securities and Exchange Commission dated 22 January.
The target of the fund, which had a first sale listed in February 2018, is not clear. St Louis-headquartered Stifel, Nicolaus & Company is listed as a placement agent.
Neuberger moved into the real estate secondaries business in July 2017 and hired Scott Koenig, the head of real estate secondaries at the New York office of what was then DB Private Equity, to lead the venture.
The business operates similarly to Neuberger’s private equity platform, focusing on acquiring stakes in individual funds, either through single-line LP stake trades or GP-led deals.
The firm’s most recent private equity secondaries fund hit final close on $2.5 billion, above its $2 billion target, in January 2017.
Deals it has backed include the restructuring of Wind Point Partners’ 2006-vintage fund. The firm is also lined up to back a GP-led process on the 2006-vintage $8.1 billion Thomas H Lee Equity Partners VI, which has stalled due to questions around pricing, Secondaries Investor understands.
Real estate secondaries volumes 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.
Neuberger did not respond to a request for comment on the fundraise.