N
euberger Berman's second real estate private equity secondary fund, RESOF II, has exceeded its target by over 30%, closing at $1.05 billion. This surpasses not only the initial goal of $800 million but also its predecessor, which raised $712 million in 2018.

    The fund will focus on acquiring interests in mature real estate funds from limited partners seeking liquidity and recapitalizing seasoned funds alongside incumbent managers. It will invest globally, with a primary focus on the US and Europe, targeting middle-market opportunities where selectivity can be maximized.

    "We're excited about the long-term potential of real estate secondaries," said Scott Koenig, head of Neuberger's Real Estate Secondaries business. "Our goal is to build a diversified portfolio of seasoned assets acquired at attractive prices through the expanding secondary market."

    The closing comes as the broader secondary market experiences significant growth, with BlackRock reporting a record $162 billion in deal volume for 2024 and expected momentum this year. Recent developments include Ardian's $30 billion secondaries platform close and Franklin Templeton's launch of its first open-end fund focused on secondary private equity investments.

    Ted Rykowski, managing director, noted that RESOF II benefits from Neuberger's disciplined approach to secondary investing, refined over decades. With a growing team and resources, the firm is well-positioned to source high-quality real estate secondary investments globally.

    The fund attracted a diverse investor base from North America, Europe, and Asia, including corporate pension plans, endowments, foundations, insurance companies, family offices, and high net worth individuals. As of December 2024, NB Private Markets managed over $125 billion in commitments across various strategies.

    Simpson Thacher & Bartlett served as legal counsel to Neuberger Berman for the fund.