Real estate secondaries funds raise $3.6bn in 2014

Real estate secondaries fundraising reached a record high, according to PEI data.

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