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Partners Group hauls $800m for two global RE funds

The Zug, Switzerland-based private markets investment manager is raising what is believed to be the largest global real estate multi-manager and secondaries funds ever. It is expected to hold final closes for both vehicles next year.

Partners Group has raised approximately $800 million for its two new global real estate funds after returning to the fundraising trail earlier this year. The Zug, Switzerland-based firm currently is in the market with its third global real estate fund of funds, Partners Group Global Real Estate 2013, and its second dedicated global real estate secondaries offering, Partners Group Real Estate Secondary 2013.

Partners Group is aiming to raise $1 billion for each fund. Through March filings with the US Securities and Exchange Commission, the firm indicated that it was in the market raising both funds, but it has not made any additional filings since then. If successful, the two vehicles would become what is said to be the largest global real estate multi-manager vehicle and one of the largest real estate secondaries funds ever raised. Landmark Partners is also said to be in the market with a real estate secondaries vehicle that is targeting $1 billion.

The private investment markets manager thus far has collected about one-third of the multi-manager fund’s equity goal and approximately half of the secondaries vehicle’s target, according to a market source. The firm is anticipated to hold final closes for Partners Group Global Real Estate 2013 and Partners Group Real Estate Secondary 2013 during the latter half of next year. Partners Group declined to comment.

Partners Group Global Real Estate 2013 will pursue the firm’s private real estate strategy of investing in traditional funds, secondary transactions and direct real estate deals. About a third of the fund will be allocated to each segment of the strategy and also will be diversified equally among its target regions of the Americas, Europe and Asia.

With both its traditional fund and direct real estate investments, Partners Group has favored an operator-focused approach, typically investing in smaller funds sponsored by firms specializing in a specific property type or region, or partnering with operators directly through joint investments. Both funds will invest in the same secondaries transactions, although the capital allocations from each vehicle will vary depending on the location of the investment, diversification objectives and other factors.

Partners Group previously amassed $875 million for its second global real estate multi-manager fund, Partners Group Global Real Estate 2011, in 2012. Meanwhile, it closed its first dedicated real estate secondaries fund, Partners Group Real Estate Secondary 2009, at its hard cap of $1.5 billion in 2010. That equity haul included approximately $1 billion raised through a Euro-denominated feeder vehicle and $500 million through two dollar-denominated feeder vehicles. PERE understands that both funds are expected to be fully invested by the end of the year.

Partners Group currently manages €30 billion in assets across its businesses in private real estate, private equity, private infrastructure and private debt, according to its website. Of that, approximately €4 billion is in real estate.