Baar-Zug, Switzerland, 5 September 2018
Partners Group reaches EUR 2 billion target for private real estate secondaries program
Partners Group, the global private markets investment manager, has reached its target of raising EUR 2 billion for its third dedicated private real estate secondaries program. The capital was raised across Europe, Latin America and Asia.
Partners Group's private real estate secondaries program aims to capitalize on the firm's global network to source and acquire high-quality property portfolios and single real estate assets, with an overweight on mature real estate assets in need of more time and capital to realize their value creation potential. In particular, Partners Group will seek opportunities to provide tailored asset and portfolio liquidity solutions to operators, developers and third party investors in order to support asset-level business plans, or to structure fund recapitalizations due to an upcoming fund or debt maturity.
Marc Weiss, Partner, Co-Head Private Real Estate, Partners Group, states: "We have seen strong demand from clients for this third iteration of our real estate secondaries strategy. Our real estate secondary deal flow has continued to grow in recent years, thanks to our integrated approach, and we are able to leverage the sourcing and execution advantages gained from investing across directs, secondaries and primaries in order to invest in the most attractive opportunities globally for the benefit of our investors."
As of the start of August 2018, the program was already committed to 15 investments. Examples include a portfolio of six office and multifamily assets across the US cities of Denver, Boulder, Seattle, Portland and Austin and a property portfolio comprising seven assets across Sweden and Finland in the retail, logistics, hospitality and education sectors.
Mike Bryant, Managing Director, Co-Head Private Real Estate, Partners Group, comments: "With our focus on proprietary sourcing and ability to offer bespoke solutions to complex situations across our real estate business, we see increasing correlation between the profiles of our direct and secondary investments. Both strategies are centered on entrepreneurial ownership, requiring strong value creation capabilities, and both target markets that have a favorable investment outlook supported by sustainable social and demographic trends."
Investors in the program constitute a mix of new and existing clients, including public and corporate pension plans, corporations, insurance companies, endowment funds and foundations from around the world. Partners Group's founders, partners, and other employees, together with affiliates of the firm, also made a substantial investment into the program, committing close to EUR 70 million of the assets raised.