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Portfolio Advisors hits $200m mark on RE FoF

Stakes in real estate vehicles accounted for 7% of total deal volume last year, according to advisor Greenhill.

Portfolio Advisors has held a $201 million first close on its latest real estate fund of funds, having launched at the start of last year.

Portfolio Advisors Real Estate Fund VII raised the capital from six investors, according to a filing with the Securities and Exchange Commission. The first sale was made on 1 January.

Similar to its predecessors, PAREF VII invests in primaries, secondaries and co-investments, the size of each component depending on investor demand. The fund, which had no defined target as of June, will aim to raise a little more than its predecessor, Secondaries Investor reported.

That month Missouri Local Government Employees’ Retirement System committed $60 million to the fund, double the amount it committed to PAREF VI, which raised $485 million by final close in 2017 after around two and a half years in market. 

It is unclear how much of the fund will be allocated to secondaries.

Portfolio Advisors did not return a request for comment.

Real estate funds accounted for 14 percent of funds sold in the first half of 2018 and 7 percent of volume, according to data from advisor Greenhill. They traded for an average price of 90 percent of net asset value during the period, compared with 93 percent during full-year 2017.

In January Carlyle Group’s Metropolitan Real Estate Equity Management closed its second real estate secondaries fund on $1.2 billion. Secondaries Investor reported in 2017 that the firm was seeking more than double the size of its predecessor, which closed on $550 million, beating its $450 million target.