Partners Group announced that it is targeting $1.5 billion for its fifth real estate secondaries program, which includes a closed-end fund as well as bespoke mandates and other investment vehicles pursuing the same strategy.
The global private markets firm has already completed a first close for the program, securing more than $650 million in commitments.
The program will focus on providing liquidity solutions to both general partners and limited partners through GP-led transactions, LP-led secondaries, and other liquidity structures. It will primarily target quality income-producing assets.
The fund has been seeded with an LP-led secondary portfolio consisting of interests in three global real estate funds with exposure to residential, industrial, and hospitality sectors. According to Partners Group, these sectors are benefiting from favorable long-term trends.
The company said the real estate secondaries market is gaining momentum as lower transaction volumes and slower fundraising cycles encourage investors and fund managers to seek alternative sources of liquidity. In addition, approaching debt maturities are creating opportunities to acquire high-quality assets at attractive valuations.
Partners Group noted that its previous program, Real Estate Secondary IV, ranks among the top-quartile performers for 2021 and 2022 vintage closed-end real estate secondaries funds, based on Preqin data.
Since entering the market in 2008, the firm has invested more than $6 billion across over 120 real estate secondaries transactions globally.
Partners Group currently manages a global real estate portfolio with a gross asset value of approximately $56 billion. Overall, the firm manages more than $185 billion in assets and employs around 2,000 professionals worldwide.
KEY QUOTE:
“Our real estate secondaries strategy is highly tactical, providing liquidity solutions to GPs and LPs in a capital constrained market. We have been an active secondaries investor for nearly two decades, with our strategy underpinned by differentiated sourcing and asset level underwriting capabilities as well as our deep knowledge of secular tailwinds and capital markets dynamics.”
Henrik Orrbeck, Co-Head Of Real Estate, Partners Group
