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Buyers of Real Estate Fund Stakes

by Antonia Lee

  • 12 May 2011
  • RE

While buyers of real estate fund stakes make up a smaller portion of the secondary market universe, there are still a considerable number of investors seeking secondary real estate opportunities. Preqin currently tracks 34 traditional buyers of real estate fund stakes and just over 100 institutional investors that are looking to purchase real estate fund stakes on the secondary market. Of the traditional secondary market buyers, four are currently in the process of raising vehicles dedicated to purchasing real estate fund stakes, while the remaining 30 include allocations to such investments as part of their overall investment strategies.

One secondaries vehicle currently seeking real estate fund opportunities is Landmark Real Estate Fund VI, which closed in April 2011 with $718mn in commitments. The vehicle is targeting investors selling interests in funds across Europe, Asia and the US. It seeks to acquire core, value added and opportunistic funds. Belveron Partners II is another fund actively looking to buy on the secondary market after it held a first close in March 2011 on $12mn. The fund will purchase limited partnership interests in US-focused real estate vehicles and has a particular focus on affordable housing and industrial properties.

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