Key Takeaways
- • Neuberger Berman hired Scott Koenig, former head of real estate secondaries at Deutsche Bank's Private Equity division, to lead and expand the firm's real estate secondaries platform, leveraging his 22 years of real estate experience and 16 years at Deutsche Bank.
- • The firm's second real estate secondaries fund, NB Real Estate Secondary Opportunities Fund II LP, exceeded its fundraising target by 30%, raising more than $1 billion in investor commitments—a 48% increase over the predecessor fund's $712 million.
- • Koenig joined Neuberger Berman in 2017 to develop and lead the real estate secondaries investment strategy as an extension of the firm's private equity secondaries platform, positioning the business as a meaningful growth area within its alternatives division.
- • The real estate secondaries strategy employs a fundamentals-driven approach to construct well-diversified portfolios of seasoned real estate assets acquired at discounts to comparable valuations.
Summary
Neuberger Berman has expanded its alternatives capabilities by leveraging Scott Koenig's expertise in real estate secondaries, a growing segment within private equity investing. Koenig, who spent 16 years at Deutsche Bank where he headed the real estate secondaries business for DB Private Equity, joined Neuberger Berman in 2017 to build out the firm's entry into this market. With 22 years of cumulative experience in real estate and real estate investing, Koenig has emerged as a key architect of Neuberger's strategy in this space.
The strategic focus on real estate secondaries has proven effective for the New York-based asset manager. The firm's second dedicated vehicle, NB Real Estate Secondary Opportunities Fund II LP, achieved a final close with commitments exceeding $1 billion, surpassing the fund's target by 30 percentage points. This represents substantial growth relative to the predecessor fund, which raised $712 million in total investor commitments—making the second fund 48% larger and reflecting strong institutional demand for the platform.
Neuberger's approach to real estate secondaries centers on constructing well-diversified portfolios of seasoned assets acquired at discounts to comparable valuations. The strategy benefits from a fundamentals-driven investment methodology designed to give institutional investors comfort with valuations in the secondaries market. By positioning real estate secondaries as an extension of its existing private equity secondaries platform—an area where Neuberger has established operational expertise—the firm has created a cohesive alternatives offering that appeals to sophisticated capital allocators seeking exposure to established real estate assets with attractive risk-adjusted return profiles.
The strategic focus on real estate secondaries has proven effective for the New York-based asset manager. The firm's second dedicated vehicle, NB Real Estate Secondary Opportunities Fund II LP, achieved a final close with commitments exceeding $1 billion, surpassing the fund's target by 30 percentage points. This represents substantial growth relative to the predecessor fund, which raised $712 million in total investor commitments—making the second fund 48% larger and reflecting strong institutional demand for the platform.
Neuberger's approach to real estate secondaries centers on constructing well-diversified portfolios of seasoned assets acquired at discounts to comparable valuations. The strategy benefits from a fundamentals-driven investment methodology designed to give institutional investors comfort with valuations in the secondaries market. By positioning real estate secondaries as an extension of its existing private equity secondaries platform—an area where Neuberger has established operational expertise—the firm has created a cohesive alternatives offering that appeals to sophisticated capital allocators seeking exposure to established real estate assets with attractive risk-adjusted return profiles.
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