SPONSORED: Ares Management Corp. — Secondary market steps up to meet need for liquidity solutions
The real estate secondaries market has become quite active, increasing volume steadily from late 2022 through now. Michelle Creed and Jamie Sunday, partners and co-heads of real estate secondaries with Ares Management Corp., expect 2023 to be a record year for secondary market volume, exceeding last year’s $12.4 billion of volume. In an interview published in the October issues of Institutional Real Estate Americas, Institutional Real Estate Europe and Institutional Real Estate Asia Pacific, Creed and Sunday discuss the factors in today’s market environment that have caused investors to seek liquidity in the secondary market, and the increasing popularity of fund sponsor–led secondary transactions.
“There was recognition by the fund sponsor community that what private equity sponsors were doing made sense for real estate, as well,” says Creed.
“Fund sponsors lean into these transactions as one of the main sources for driving liqu