Goldman Sachs Alternatives announces the definitive closure of its third secondary fund dedicated to the real estate sector
27 JUN, 2024
Goldman Sachs Alternatives has announced the definitive closure of its third secondary fund dedicated to the real estate sector, Vintage Real Estate Partners III (VREP III), valued at 3.4 billion dollars.
Vintage Strategies by Goldman Sachs Alternatives offers liquidity solutions to LP and GP fund managers. Goldman Sachs has long been a leader in the secondary sector, with a history dating back to 1998 and over 42,000 million dollars in assets managed as of March 31, 2024.
VREP III, the third iteration of Goldman Sachs' dedicated strategy to the secondary real estate sector, closed above its fundraising target with commitments from a global and diverse group of institutional and high net worth investors and a significant commitment from Goldman Sachs employees. VREP III represents the largest fund ever raised dedicated to the secondary real estate sector. The firm's predecessor fund, VREP II, previously closed commitments valued at 2.75 billion dollars.
In May, Goldman Sachs Alternatives announced the definitive closure of West Street Real Estate Credit Partners IV (RECP IV) and other related vehicles, which are based on the company's long track record in the real estate credit sector. The capital set of RECP IV represents over 7,000 million dollars of real estate lending capacity, including leverage, and together with the capital raised for VREP III represents over 10,000 million dollars of real estate capital oriented to liquidity available for deployment, coming from different parts of the company's investment platform.
Since the inception of the strategy, the Vintage team has invested more than 8.9 billion dollars in 165 secondary real estate transactions. In 2023, the team evaluated a flow of 56.8 billion dollars in secondary real estate transactions.
We believe that the current market environment represents one of the most attractive deployment opportunities we have observed in the secondary real estate sector. VREP III, the largest fund dedicated to the secondary real estate sector raised to date, will be well positioned to capitalize on increasingly attractive opportunities, in a market where size is a significant competitive advantage.
Harold Hope, global director of Vintage Strategies, Goldman Sachs Alternatives
The demand for secondary real estate solutions, both from LPs and GPs, is at its highest, driven by the turbulence of global real estate markets and a strong need for liquidity. We believe that the pressure on the real estate sector is here to stay for the foreseeable future, and we expect this capital to allow us to continue to be a partner for real estate market participants who need innovative capital solutions to help alleviate some of their liquidity needs.
Sean Brenan, director of real estate investment activity of Vintage Strategies, Goldman Sachs Alternatives
