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Partners Group eyes RE secondaries with $3bn fund – updated

Partners Group Real Estate Opportunities 2019 will target secondaries and direct opportunities.

Partners Group has returned to market with a real estate fund that will include an allocation to secondaries.

The Zug-headquartered firm is targeting $3 billion for Partners Group Real Estate Opportunities 2019, which will target secondaries and direct opportunities, according to a source familiar with the fund.

A document prepared for Plymouth County Retirement Association shows the fund will have an 8 percent preferred return.

Real Estate Opportunities 2019 will charge a 1.5 percent management fee and 20 percent carried interest, the source noted.

Partners Group previously collected $2.9 billion for its dedicated Real Estate Secondary 2017 fund, according to Secondaries Investor data. That fund had deployed $688 million across 28 investments as of 31 December.

Partners Group’s $1.95 billion Real Estate Secondary 2013 had generated a 1.39x net total value multiple and 15.4 percent net internal rate of return as of 31 December, the document noted. Its $1.5 billion Real Estate Secondary 2009 delivered a 1.51x net TVM and 9.1 percent net IRR as of the same date.

The firm employs 63 real estate professionals and has experienced 13 senior-level departures over the past five years, according to the document. It pursues non-core direct investments with a preference towards value-added properties and is around 40 percent exposed to Europe, 35 percent to the US and 25 percent to Asia.

Partners Group employs around 1,200 professionals globally and has $83 billion of assets under management.

A spokeswoman for Partners Group declined to comment on fundraising.

– This report was updated to show the firm is seeking $3 billion for the fund, which charges a 1.5 percent management fee and 20 percent carried interest.