Goldman Sachs Alternatives has completed the closing of its third secondary real estate fund, Vintage Real Estate Partners III ("VREP III"), raising $3.4 billion. This fund is part of Goldman Sachs Alternatives' Vintage Strategies liquidity solutions for LP and GP fund managers.
Since 1998, Goldman Sachs has been a leading player in the secondary sector, managing over $42 billion in assets as of 31 March 2024. VREP III exceeded its initial fundraising target, thanks to participation from global institutional and high net worth investors, as well as significant engagement from Goldman Sachs employees. According to the company, the fund is the largest secondary real estate fund the firm has raised to date, surpassing the $2.75 billion raised by its predecessor, VREP II.
In May, Goldman Sachs Alternatives also closed West Street Real Estate Credit Partners IV ("RECP IV") and related vehicles focused on real estate lending. The combined RECP IV capital provides over $7 billion of real estate lending capacity, including leverage. Together with the capital raised for VREP III, the firm has more than $10 billion of real estate capital ready to be deployed.
Harold Hope, Global Head of Vintage Strategies at Goldman Sachs Alternatives, says: "We believe the current market environment represents one of the most attractive deployment opportunities we have seen in the secondary real estate sector." He adds that VREP III is excellently positioned to take advantage of increasingly attractive opportunities in a market where size is a competitive advantage.
According to Sean Brenan, real estate investment activity leader at Vintage Strategies: "Demand for secondary real estate solutions from 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." Brenan also mentions that they expect the capital raised to enable them to continue to be a strategic partner for real estate market players looking for innovative capital solutions.
Since the launch of this strategy, the Vintage team has invested more than $8.9 billion in 165 secondary real estate deals and assessed a $56.8 billion deal flow in 2023.
