Real estate secondaries took off this year with some of the biggest secondaries deals ever and a robust fundraising market.
There are currently five dedicated real estate secondaries funds in market targeting a combined $2.3 billion, according to PERE’s Research and Analytics division. Including funds of funds that make secondaries purchases, the number grows to 32 funds targeting a total of $6.14 billion.
There will be no shortage of deals for these funds, according to James Sunday, a partner at private equity and real estate secondaries firm Landmark Partners.
“Over the past six years, real estate secondary transaction volume has been growing at over 30 percent per year and we expect this robust growth to continue over the next few years,” Sunday recently told Secondaries Investor‘s sister publication PERE.
Looking at fundraising today, real estate secondaries funds in market pale in comparison to previous amounts raised in the sub-sector, with the largest fund in market, Madison International Real Estate Liquidity Fund VI, targeting just under half of the largest fund ever raised — Partners Group’s almost $2 billion 2013-vintage vehicle.
Below are the 10 biggest real estate secondaries funds of all time ranked by amount raised:
|Fund Name||Fund Manager||Current Size ($mn)||Fund Status||Region Focus|
|Partners Group Real Estate Secondary 2013||Partners Group||1950||Currently Investing||Global|
|Landmark Real Estate Partners VII||Landmark Partners||1600||Currently Investing||Global|
|Partners Group Real Estate Secondary 2009||Partners Group||1500||Currently Investing||Global|
|Madison International Real Estate Liquidity Fund V||Madison International Realty||825||Currently Investing||Global|
|Landmark Real Estate Fund VI||Landmark Partners||718||Currently Investing||Global|
|Madison International Real Estate Liquidity Fund IV||Madison International Realty||510||Fully Invested||Global|
|AIP Phoenix Global Real Estate Secondaries Fund II 2013||Morgan Stanley Alternative Investment Partners (MS AIP)||500||Currently Investing||Global|
|Aberdeen European Secondaries Property Fund of Funds||Aberdeen Asset Management||394.58||Currently Investing||Pan-
|Phoenix Global Real Estate Secondaries Fund||Morgan Stanley Alternative Investment Partners (MS AIP)||370||Currently Investing||Global|
|UK Real Estate Recovery Fund||Aviva Investors||343.92||Fully Liquidated||Western Europe|
Source: PERE Research & Analytics.