Two real estate secondaries funds closed on an aggregate total of $1.06bn during the first half of the year, compared to zero funds that closed during the same period in 2013, according to PEI’s Research and Analytics division.
UK Real Estate Recovery Fund II, which is managed by London-based asset manager Aviva Investors, raised £140 million at the end of March. The fund had been targeting £250 million.
Madison International Real Estate Liquidity Fund V closed on $835 million, surpassing its $750 million target.
Aviva and Madison could be joined by other global real estate fund managers that are in market such as Landmark Partners, which held a first close on $560 million for its Landmark Real Estate Partners VII in June. The fund is targeting $1 billion.
Morgan Stanley Alternative Investment Partners is also in market, targeting $500 million for its AIP Phoenix Global Real Estate Secondaries Fund II 2013. Partners Group is seeking $1 billion for its fund.
The next real estate secondaries fund to begin fundraising could be the StepStone Group, which launched its real estate arm by absorbing Clairvue Partners last month. The firm is anticipating a September launch date for its debut fund, a source familiar with the matter previously told Secondaries Investor.