Key Takeaways
- • Neuberger Berman closed NB Real Estate Secondary Opportunities Fund II (RESOF II) at $1.05 billion in commitments, exceeding its $800 million target by 31%, demonstrating strong institutional demand for real estate secondaries strategies.
- • RESOF II's investor base spans corporate and public pension plans, endowments, foundations, insurance companies, family offices, and high net worth individuals across North America, Europe, and Asia, reflecting diversified LP composition.
- • The fund targets mid-market real estate secondary acquisitions globally, with geographic focus on the US and Europe, aiming to acquire mature fund stakes from liquidity-seeking investors and recapitalize established real estate vehicles.
- • RESOF II represents the successor to Neuberger Berman's inaugural NB Real Estate Secondary Opportunities Fund, which raised $712 million in early 2019, showing the firm's track record in scaling real estate secondaries capabilities.
- • Scott Koenig, head of Real Estate Secondaries at Neuberger Berman, emphasized the fund's strategy to build a diversified portfolio of seasoned assets at attractive prices, positioning real estate secondaries as offering differentiated access to the asset class with compelling risk-adjusted return potential.
Summary
Neuberger Berman, a major US alternative asset manager, successfully closed its second real estate secondary fund at $1.05 billion in investor commitments, substantially exceeding its initial fundraising target of $800 million. The oversubscription underscores institutional appetite for secondary real estate strategies in the current market environment.
NB Real Estate Secondary Opportunities Fund II (RESOF II) attracted capital from a diversified institutional investor base including corporate and public pension plans, endowments, foundations, insurance companies, family offices, and high net worth individuals. Geographic sources were distributed across North America, Europe, and Asia, reflecting global demand for the strategy. Management and employee commitments also contributed to the fund's successful close.
The fund's investment mandate focuses on acquiring stakes in mature real estate funds from investors seeking liquidity, as well as recapitalizing established real estate vehicles and investments managed by third-party managers. RESOF II operates with a global scope while concentrating exposure in the US and Europe, with a deliberate mid-market positioning where the management team believes greater selectivity and value creation opportunities exist.
RESOF II's successful raise builds on the performance of its predecessor fund, which closed at $712 million following its 2019 launch. This trajectory demonstrates Neuberger Berman's capability to scale its real estate secondaries platform and validate investor confidence in the strategy's execution and return generation potential. Simpson Thacher & Bartlett LLP served as legal advisor to Neuberger Berman for the transaction.
According to Scott Koenig, head of Real Estate Secondaries, the firm aims to construct a well-diversified portfolio of seasoned assets acquired at attractive valuations within the expanding secondary market. Koenig characterized real estate secondaries as offering investors differentiated access to the asset class with potential for compelling risk-adjusted returns, positioning the strategy as a sophisticated alternative within institutional real estate allocation frameworks.
NB Real Estate Secondary Opportunities Fund II (RESOF II) attracted capital from a diversified institutional investor base including corporate and public pension plans, endowments, foundations, insurance companies, family offices, and high net worth individuals. Geographic sources were distributed across North America, Europe, and Asia, reflecting global demand for the strategy. Management and employee commitments also contributed to the fund's successful close.
The fund's investment mandate focuses on acquiring stakes in mature real estate funds from investors seeking liquidity, as well as recapitalizing established real estate vehicles and investments managed by third-party managers. RESOF II operates with a global scope while concentrating exposure in the US and Europe, with a deliberate mid-market positioning where the management team believes greater selectivity and value creation opportunities exist.
RESOF II's successful raise builds on the performance of its predecessor fund, which closed at $712 million following its 2019 launch. This trajectory demonstrates Neuberger Berman's capability to scale its real estate secondaries platform and validate investor confidence in the strategy's execution and return generation potential. Simpson Thacher & Bartlett LLP served as legal advisor to Neuberger Berman for the transaction.
According to Scott Koenig, head of Real Estate Secondaries, the firm aims to construct a well-diversified portfolio of seasoned assets acquired at attractive valuations within the expanding secondary market. Koenig characterized real estate secondaries as offering investors differentiated access to the asset class with potential for compelling risk-adjusted returns, positioning the strategy as a sophisticated alternative within institutional real estate allocation frameworks.
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