Goldman Sachs Alternatives has closed 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’ liquidity solutions for LP and GP fund managers through its Vintage Strategies.
Since 1998, Goldman Sachs has been a significant player in the secondary sector, managing over $42 billion in assets as of March 31, 2024. VREP III surpassed its initial fundraising goal, attracting global institutional and high net worth investors, along with notable participation from Goldman Sachs employees. This fund is the largest secondary real estate fund raised by Goldman Sachs to date, exceeding the $2.75 billion raised by VREP II.
In May, Goldman Sachs Alternatives also closed West Street Real Estate Credit Partners IV (RECP IV) and related vehicles, focusing on real estate lending. The combined RECP IV capital offers over $7 billion in real estate lending capacity, including leverage. Together with VREP III, the firm now has over $10 billion in real estate capital ready for deployment.
Harold Hope, Global Head of Vintage Strategies at Goldman Sachs Alternatives, stated, “We believe the current market environment offers one of the most attractive deployment opportunities in the secondary real estate sector.” He emphasized that VREP III is well-positioned to capitalize on these opportunities in a competitive market.
Sean Brenan, leader of real estate investment activity at Vintage Strategies, noted, “Demand for secondary real estate solutions from both LPs and GPs is at an all-time high due to the turmoil in global real estate markets and a strong need for liquidity.” He added that the raised capital will enable the firm to continue being a strategic partner for market players seeking innovative capital solutions.
Since the strategy’s inception, the Vintage team has invested more than $8.9 billion in 165 secondary real estate deals and evaluated $56.8 billion in deal flow in 2023.
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By Proptechbuzz
By Ravi Kumar
