Real estate secondaries funds closed on $3.6 billion of capital in 2014, according to PEI’s Research and Analytics division.
While total private equity real estate capital raised declined from $118 billion in 2013 to $115.3 billion in 2014, real estate secondaries capital increased. In 2013, no real estate secondaries funds closed and in 2012 only $200 million was raised.
Still, secondaries only make up a fraction of total private equity real estate capital. This year it accounted for roughly 3 percent of the total.
It also makes up a small proportion of total secondaries capital raised in 2014, when 31 funds raised $28.9 billion.
Real estate secondaries funds that closed included the market’s largest-ever fund: Partners Group Real Estate Secondary 2013, which closed on $1.95 billion in October. Madison International also closed its fifth global secondaries fund on $825 million and Aberdeen Asset Management raised roughly $386.3 million for its debut real estate secondaries fund.
|Fund Name||Fund Manager||Current Size ($m)|
|Partners Group Real Estate Secondary 2013||Partners Group||$1,950.00|
|Madison International Real Estate Liquidity Fund V||Madison International Realty||$825.00|
|Aberdeen European Secondaries Property Fund of Funds||Aberdeen Asset Management||$386.27|
|UK Real Estate Recovery II||Aviva Investors||$222.72|
|Landmark Real Estate Partners VII Co-Investment||Landmark Partners||$200.00|
Source: PEI’s Research and Analytics division