The real estate secondaries market has seen increasing levels of activity in recent years, especially within the GP-led space, driven by both the current economic environment and the maturation of the institutional real estate industry.
“The real estate secondaries market — which includes recapitalizations, continuation funds and transfers of fund LP interests — has become more active and evolved over the past several years,” said John Ferguson, global co-chair of real estate at global law firm Goodwin, in an interview with IREI.
Ferguson noted a number of factors driving the increase in activity: (a) the maturation and evolution of the institutional real estate market; (b) a notable decline in real estate asset transactional volume over the past couple of years, which as a consequence has decreased the distributions out of funds and consequently liquidity in the market has effectively been provided at the fund level vs. the asset level; and (c) the increase in
