Indirect Private Real Estate
Real Estate Partners Solutions
The Real Estate Partners series focuses on secondaries investing that enables access to high-quality real estate assets at potentially discounted valuations, providing bespoke capital solutions to motivated sellers. It is particularly effective during periods of dislocation and illiquidity. In today’s environment, we believe compelling opportunities exist across General Partner (GP)-led and Limited Partner (LP)-led transactions.
a. GP-led Transactions for high-quality real estate
GP-led transactions recapitalize existing real estate portfolios while retaining in-place operating partners. This approach is particularly suited to the current cycle, where constrained liquidity and capital shortages have created motivated sellers.
These deals offer investors access to rarely traded, high-quality assets, including trophy assets, through exclusive bilateral negotiations, with that aim to minimize price competition and enhance execution certainty. Partnerships with trusted owners enhance transparency into operations and performance, aiding informed decision-making.
GP-led transactions also offer shorter durations and in-place cash flows, making them particularly attractive for investors seeking income resilience and capital preservation. By leveraging strong relationships with trusted operators, we collaborate in seeking high-quality assets in favored sectors, prioritize opportunities with operational stability and growth potential and secure enhanced governance provisions for greater portfolio control. For example, investors are actively exploring GP-led opportunities to recapitalize portfolios of modern logistics assets, which benefit from digitalization-driven demand for warehousing and distribution centers.
b. LP-led transactions: Opportunities in volatile markets
Prolonged market volatility and constrained distributions have driven a wave of LP-led secondaries transactions. Liquidity-constrained LPs are increasingly motivated to sell fund interests at significant discounts—sometimes between 15% and 30% relative to trough valuations. This creates opportunities to acquire high-quality fund positions in sectors like residential and logistics.
Our approach focuses on shorter-duration, moderately leveraged positions with in-place cash flows. By investing in institutional-quality markets with deep pools of buyers, we aim to mitigate tail risks and ensure liquidity on exit. LP-led transactions offer a strategic pathway for investors to capitalize on liquidity-driven dislocations, securing high-quality assets at scale and assembling portfolios positioned for long-term resilience and growth.
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