It’s big; it’s really, really big. Switzerland’s Partners Group has made history with the closing of Partners Group Real Estate Secondary 2013 at its hard cap of $1.95 billion, making the vehicle the world’s largest dedicated real estate secondaries program ever raised in the market.
“We were very pleased with the strong reception of this program in the market–we believe it illustrates investors’ growing recognition of the value of an allocation to secondaries as a lower risk way of getting international exposure than a global commingled opportunistic fund and a great way to mitigate the J-Curve,” Marc Weiss, Partner & global head, Private Real Estate Secondaries with Partners Group, told Commercial Property Executive
It seems institutional investors of practically every type from all corners of the globe took an interest in Secondary 2013, which engages in the acquisition of real estate portfolios, including single assets and joint venture ensembles, on the secondary market. Participants, both new and returning to Partners Group’s secondaries programs, include sovereign wealth funds, public and corporate pension plans, endowment funds and foundations, insurance companies and financial institutions. California’s San Bernardino County Employees’ Retirement Association is on the list, having committed $75 million earlier this year. It was the widespread global participation that resulted in Secondary 2013 being “heavily over-subscribed” according to Partners Group.
Secondary 2013’s new distinction in the real estate investment world is symbolic, as it exhibits two aspects of the modern commercial real estate capital markets, Ben Carlos Thypin, director of market analysis with real estate research & consulting firm Real Capital Analytics, told CPE. “First, [this fundraising] demonstrates that the real estate capital markets have matured to the point where institutionally funded pools of capital exist solely to provide liquidity to heretofore illiquid interests in real estate investments,” he said. “Second, it demonstrates that even in a relatively stable market environment such as this, there remains demand for recapitalization capital that can be used to address situations in which the interest and objectives of investment partners may no longer be aligned.”
Read More: http://www.cpexecutive.com/business-specialties/investment/partners-group-breaks-record-with-closing-of-1-9b-secondaries-program/1004104887.html
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.