If there’s one kind of alternative asset investment that looks worse than private equity, it’s probably real estate (you could argue hedge funds too, I suppose, but they don’t have multi-year lock-up periods).
As such, investors are looking with greater interest at secondary investments which target real estate funds. There are at least four real estate secondary funds in the market today, according to data from placement agent Probitas Partners. Three of them are operated by firms with private equity secondary funds in the market as well. at the same time.
CS Strategic Partners IV RE, operated by Credit Suisse. The firm seeks to raise $420 million. According to an SEC filing, the firm has closed on $300 million as of last fall, with investments from Minnesota State Board of Investment, IBM Personal Pension Plan Trust, Credit Suisse Private Equity, and Commonwealth of Pennsylvania Public School Employee’s Retirement System.
Landmark Real Estate Fund IV, operated by Landmark Partners Real Estate. The firm is in the process of raising $750 million.
Liquid Realty Partners V is another fund in the market with a $800 million target.
Lastly, Partners Group Real Estate Secondary Fund is preparing to come to market with a $1 billion target on its new fund.