Investing in real estate secondaries

PERE’s 2024 Secondaries & Recapitalizations report shows continuation funds are driving manager-led opportunities.

As investors seek liquidity and managers look to increase value, continuation funds and recapitalizations are gaining popularity. And while 2023 saw a dip in deal activity, this appears to be a blip. Real estate secondaries should see continued growth, driven by increased demand for capital and attractive discounts, among other trends outlined in this report.

Five key trends in real estate secondaries

The real estate secondaries market is poised for significant growth, driven by increased demand for capital, attractive discounts to net asset value and a broadening range of transaction types.

Real estate secondaries on the cusp of a golden age

A broad pipeline of manager- and investor-led deals is emerging in the current liquidity-constrained market, fueling long-term growth.



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The last year has seen a sea change, with investor-led secondaries coming back into vogue as economic conditions have shifted. 2022 set a record for real estate secondaries transaction volume at $12.4 billion, but lost in that number is a slowdown for GP-leds which has continued into this year. While 2023 is shaping up to be a very different year to the one that went before, the LP-led revival suggests it will still be an active one.

No longer the exclusive domain of private equity specialists, real estate secondaries are a hive of activity right now. With Blackstone’s €21 billion recapitalization of Mileway billed as the largest private real estate deal of all time, and total secondaries transaction volumes surging, it is increasingly clear that secondaries and GP-led recaps – with their myriad benefits for both managers and investors – have become a strategic play in the private real estate market.

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