Goldman Sachs racks up about $2.75bn for second real estate secondaries fund

Goldman Sachs has raised about $2.75 billion for its second dedicated real estate secondaries fund, beating its $1.25 billion target.

Goldman Sachs has raised about $2.75 billion for its second dedicated real estate secondaries fund, beating its $1.25 billion target. Vintage Real Estate Partners II invests in traditional real estate limited partnership interests as well as more complex structured and non-traditional secondary transactions.

PRESS RELEASE

New York, NY – May 19, 2020 — Goldman Sachs announced today that it has raised its second dedicated real estate secondaries fund, Vintage Real Estate Partners II, and associated separate accounts (collectively, “VREP II”) with approximately $2.75 billion in capital commitments, exceeding their $1.25 billion target. The fund invests globally in both traditional real estate limited partnership interests as well as more complex structured and non-traditional secondary transactions, providing liquidity to investors in illiquid real estate assets.

VREP II is the second dedicated real estate secondaries fund raised by the Vintage team. The team’s first real estate secondaries fund, Vintage Real Estate Partners, closed on approximately $900 million in capital commitments in November 2016. The group has been investing in real estate secondary transactions since 2010 through their flagship Vintage funds.

VREP II includes a diversified investor base of high quality institutional and high-net-worth individuals, including a number of commitments from existing investors as well as those new to the strategy, both from the United States as well as from countries like the United Kingdom, France, Germany, Japan, Canada and Chile.
Harold Hope, Managing Director at Goldman Sachs, said, “We’re grateful for the trust that our investors have placed in us. While many of these investors are longstanding partners in our Vintage Funds, we are pleased to welcome a number of new investors as well. The success of this fundraise is a credit to our global franchise, our established presence in the market, our experienced team, and our track record of investing in real estate secondaries.

As of March 31, 2020, VREP II had completed five transactions, with a significant amount of capital available to deploy in this period of market dislocation caused by the coronavirus (COVID-19).
Sean Brenan, Managing Director at Goldman Sachs, said, “The secondary market for real estate interests has grown substantially over the past several years, and we have seen both an increase in volumes as well the emergence of non-traditional secondary structures, similar to what we have been executing on the private equity side for many years. As we enter a period of dislocation, we anticipate a range of compelling buying opportunities. These include providing liquidity to limited partners motivated by the denominator effect and unfunded liabilities, as well as partnering with managers seeking to capitalize on reset pricing across the real estate landscape. We believe that our size and ability to move with speed and certainty will be key differentiators in the coming years.”

About the Vintage Funds and Goldman Sachs Alternative Investments

With over $38 billion in committed capital since inception, the Vintage Funds have been innovators in the secondary market for over 20 years. Investing globally and across a range of asset classes, the Vintage Funds provide liquidity, capital and partnering solutions to private market investors and managers worldwide.

Goldman Sachs is one of the world’s leading investors in alternative investments. With over 30 years of experience, we invest in the full spectrum of alternatives, including private equity, growth equity, credit, real estate, infrastructure, ESG, and absolute-return strategies. Our clients access these solutions through our direct proprietary strategies, customized strategic partnerships, and open-architecture programs. Our alternative investment teams represent over 1,300 professionals, across 31 offices around the world. We leverage the depth and breadth of global relationships across Goldman Sachs to identify investment opportunities, drawing on our firm-wide capital market insights, industry research, and risk management platforms. We extend these capabilities to the world’s leading pension plans, sovereign wealth funds, governments, financial institutions, endowments, foundations, family offices and individuals, for which we invest or advise on over $320 billion of alternative investments.