Key Takeaways
- • Two Sigma Investments has shut down new investment activity at its real estate unit and cut senior staff, including partner and chief investment officer Rich Gomel, two years after opening the business to outside investors.
- • The real estate platform targeted roughly $2 billion but raised less than half that amount, according to Bloomberg.
- • The firm will keep a skeleton crew to manage existing properties and is no longer fundraising or deploying capital.
- • The Teacher Retirement System of Texas committed approximately $135 million across the main fund and a co-investment vehicle.
- • Private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since early 2013, per PEI Group data.
Summary
Two Sigma Investments, the quantitative hedge fund firm managing about $85 billion firmwide, has shut down new investment activity at its real estate unit and cut senior staff, including partner and chief investment officer Rich Gomel, according to Bloomberg. The move comes roughly two years after the firm opened the business to outside investors through its Real Estate Opportunity Fund, which concentrated on housing and industrial properties.
The real estate unit was launched in 2019 with internal capital. In 2024 it was opened to outside investors, and the firm had targeted roughly $2 billion for the venture but raised less than half that amount. The Teacher Retirement System of Texas committed approximately $135 million across the main fund and a co-investment vehicle. The firm applied its quantitative data expertise to forecast supply and demand patterns in commercial real estate markets. Former Blackstone Vice Chairman Tom Hill, who served as chief executive of the business, departed in 2025.
The firm will maintain a skeleton crew to manage existing properties but is no longer fundraising or deploying capital. Bloomberg also reports that Two Sigma has faced internal upheaval, with its two founders locked in a prolonged dispute.
The withdrawal reflects a broader sector slowdown. According to PEI Group data, private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since early 2013. Higher interest rates have compressed property values and forced firms to extend hold periods, making capital commitments scarce across the sector.
The real estate unit was launched in 2019 with internal capital. In 2024 it was opened to outside investors, and the firm had targeted roughly $2 billion for the venture but raised less than half that amount. The Teacher Retirement System of Texas committed approximately $135 million across the main fund and a co-investment vehicle. The firm applied its quantitative data expertise to forecast supply and demand patterns in commercial real estate markets. Former Blackstone Vice Chairman Tom Hill, who served as chief executive of the business, departed in 2025.
The firm will maintain a skeleton crew to manage existing properties but is no longer fundraising or deploying capital. Bloomberg also reports that Two Sigma has faced internal upheaval, with its two founders locked in a prolonged dispute.
The withdrawal reflects a broader sector slowdown. According to PEI Group data, private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since early 2013. Higher interest rates have compressed property values and forced firms to extend hold periods, making capital commitments scarce across the sector.
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