Key Takeaways
- • Aquilius Investment Partners, founded by former Blackstone and Partners Group executives, closed $1.1 billion in total commitments for AIP Secondary Fund II, exceeding its $700 million initial target with $750 million in core fund commitments.
- • The fund targets Asia Pacific real estate secondaries—purchasing stakes in private real estate funds at discounts—capitalizing on heightened deal flow driven by depressed commercial real estate valuations and LP liquidity needs across the region.
- • Investor base includes sovereign wealth funds, pension funds, family offices, and other institutional financial institutions, reflecting institutional demand for secondaries strategies in illiquid APAC real estate markets.
- • The fundraise underscores a "generational buying opportunity" in Asian real estate secondaries as asset managers face pressure to liquidate holdings at depressed rates before fund expiration dates, with deal volumes reaching record highs.
- • Aquilius, founded in 2021 by Bastian Wolff (former Asia real estate head at Partners Group) and other industry veterans, has now established itself as a meaningful player in APAC real estate secondaries with a strong institutional track record.
Summary
Aquilius Investment Partners, a Singapore-based fund manager specializing in secondary transactions of Asia Pacific real estate assets, has successfully closed fundraising for its second major vehicle at $1.1 billion in total commitments. The firm exceeded its initial $700 million target for AIP Secondary Fund II, securing $750 million in core commitments alongside associated vehicles. The capital raise reflects robust institutional appetite for real estate secondaries strategies in a region grappling with significant commercial property value declines and persistent liquidity constraints.
Aquilius was founded in 2021 by former executives from two of the world's largest alternative asset managers. Bastian Wolff, who previously served as head of Asia real estate at Partners Group, co-founded the firm alongside other industry veterans from Blackstone and Partners Group. The firm's core strategy involves acquiring stakes in unlisted private real estate funds—often at discounts—allowing investors to exit positions during periods of market stress or fund maturation when asset managers must realize returns by selling underlying properties at depressed valuations.
Market conditions have created what Wolff characterizes as a "generational buying opportunity" for secondaries in Asia. Since the U.S. Federal Reserve commenced interest rate hikes in 2022, Asian real estate markets have experienced a severe contraction, though some recovery has begun in select markets. This environment has driven secondary deal volumes to record highs as fund managers face mounting pressure to liquidate holdings and return capital to limited partners. The investor base for this fundraise comprises sovereign wealth funds, pension funds, family offices, and other institutional financial institutions—indicating strong LP recognition of secondaries as an efficient exit mechanism for illiquid APAC real estate exposures.
The successful close signals both the firm's operational credibility and the structural demand for dedicated secondaries vehicles in Asia Pacific. As commercial real estate values remain pressured and fund expiration deadlines approach, deal flow is expected to remain elevated, positioning firms like Aquilius to generate returns through portfolio acquisitions at favorable entry points.
Aquilius was founded in 2021 by former executives from two of the world's largest alternative asset managers. Bastian Wolff, who previously served as head of Asia real estate at Partners Group, co-founded the firm alongside other industry veterans from Blackstone and Partners Group. The firm's core strategy involves acquiring stakes in unlisted private real estate funds—often at discounts—allowing investors to exit positions during periods of market stress or fund maturation when asset managers must realize returns by selling underlying properties at depressed valuations.
Market conditions have created what Wolff characterizes as a "generational buying opportunity" for secondaries in Asia. Since the U.S. Federal Reserve commenced interest rate hikes in 2022, Asian real estate markets have experienced a severe contraction, though some recovery has begun in select markets. This environment has driven secondary deal volumes to record highs as fund managers face mounting pressure to liquidate holdings and return capital to limited partners. The investor base for this fundraise comprises sovereign wealth funds, pension funds, family offices, and other institutional financial institutions—indicating strong LP recognition of secondaries as an efficient exit mechanism for illiquid APAC real estate exposures.
The successful close signals both the firm's operational credibility and the structural demand for dedicated secondaries vehicles in Asia Pacific. As commercial real estate values remain pressured and fund expiration deadlines approach, deal flow is expected to remain elevated, positioning firms like Aquilius to generate returns through portfolio acquisitions at favorable entry points.
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