Goldman Sachs raises record $3.4bn for real estate secondaries fund
Goldman Sachs Asset Management has raised a record $3.4bn (£2.7bn) for its third real estate secondaries fund.
Vintage Real Estate Partners III (VREP III) closed above its fundraising target, with commitments from a range of institutional and high-net-worth investors, as well as Goldman Sachs employees.
The asset manager said that VREP III represents the largest dedicated real estate secondaries fund ever raised.
Read more: Goldman Sachs names new alternative assets boss
Its predecessor fund, VREP II, previously closed on $2.75bn of commitments.
“We believe the current market environment represents one of the most compelling deployment opportunities that we have observed in real estate secondaries,” said Harold Hope, global head of vintage strategies at Goldman Sachs Alternatives.
“As the largest dedicated real estate secondaries fund raised to date, VREP III will be well-positioned to capitalize on increasingly attractive opportunities, in a market where size is a meaningful competitive advantage. We are grateful to both our existing and new investors, and thanks to their support our team will be unconstrained when it comes to pursuing real estate secondary transactions of all sizes.”
Read more: Goldman Sachs raises $20bn for senior direct lending strategy
Goldman Sachs, which has over $42bn of assets under management in the secondaries space, said that there is currently high demand for liquidity of private real estate funds amid challenging market conditions.
“Demand for real estate secondary solutions across both LPs and GPs is at an all-time high, driven by the turmoil in global real estate markets and a strong need for liquidity,” said Sean Brenan, who leads real estate investing activity for Goldman Sachs’ vintage strategies. “We believe the pressure on real estate is here to stay for the foreseeable future, and we are hopeful that this capital will enable us to continue to be a partner to real estate market participants who need innovative capital solutions to help alleviate some of their liquidity needs.”
Goldman Sachs has been active in the private real estate sector of late.
In May, it announced that it had raised over $7bn for its real estate credit strategies after closing West Street Real Estate Credit Partners IV and related vehicles.
