Partners Group still raising its global real estate fund – update

The fund, Partners Group Global Real Estate 2014, is targeting $1bn and plans to make 25% of its investments in real estate secondaries.

The story was updated to add comments on how much the fund has raised so far.

Partners Group is still in the midst of raising its Partners Group Global Real Estate 2014 fund, which is a real estate fund of funds with a target of $1 billion.

About 25 percent of the fund, which was previously known as Partners Group Global Real Estate 2013, will be invested in real estate secondaries investments, according to a May presentation on real estate by consultant Summit Strategies Group to the city of Jacksonville Police and Fire Pension Fund.

According to Summit’s presentation, the fund has closed on $71 million to date and will target a 12 percent net internal rate of return.

A source close to the fundraising noted that the $71 million is only a sub-vehicle of the fund and that Partners Group is ahead of its $1 billion target size.

Zug, Switzerland-based Partners Group, which had €37.6 billion of assets under management as of 31 December, declined to comment.

A quarter of the global real estate fund will go toward direct investments while half of it will go toward primary investments.

Regarding fee structure, the firm will charge a 1.05 percent annual management fee for secondaries investments and 10 percent GP carried interest on secondaries investments.

The key professionals for this strategy include Pam Alsterlind, Marc Weiss and Nan Leake.

Partners Group closed its real estate secondaries fund in October 2014 with $1.95 billion and is currently in the middle of raising its Partners Group Secondary 2015 fund with a target size of €2.5 billion, according to data from PEI’s Research and Analytics division.