The Carlyle Group and The Townsend Group have raised $550m and $496m, respectively, for real estate ’secondaries’ and co-investment strategies.
Carlyle said commitments to its Metropolitan Real Estate Partners Secondaries & Co-Investments Program exceeded its $450m target.
Metropolitan Real Estate has been part of Carlyle since 2013.
The Townsend Group, meanwhile, has held a final close for its Real Estate Alpha Fund II, which will also invest in secondaries and co-investments.
The fund raised $496m from 20 institutional investors including public and private sector pension funds, foundations, endowments and select private wealth partners.
Terry Ahern, CEO of The Townsend Group, said that, due to the high level of quality deal flow, the firm is expecting to raise its next fund later this year.
Market volatility is, he said, providing “compelling investment opportunities”.
”We are finding investments with attractive returns, good equity multiples and the ability to structure strong downside protection,” Ahern said, adding that $300m of the $500m fund has been invested.
Setter Capital recently said that the secondary market for property was the sole “bright spot” among private asset classes last year 2015.
Last year, California Public Employees’ Retirement System (CalPERS) sold $3bn (€2.79bn) in real estate fund interests, marking the largest secondary market transaction in the asset class.