Real estate

The fund has increased its secondaries budget to capture opportunities arising from market uncertainty, says private equity head Yasuyuki Tomita.

The manager’s latest report estimates RE secondaries saw more than $24bn in volume last year.

The total volume figure for real estate secondaries can change depending on the definition of GP-led deals.

Full-year deal volume could reach as much as $230bn, according to the investment bank’s estimates.

Just 17 buyers accounted for nearly 70% of total secondaries volume in the first half, according to a report by the advisory firm.

While real estate assets can see discounts upward of 50% of NAV, buyers are still bullish on the strategy’s long-term growth.

The real estate chief, whose firm raised the largest-ever fund targeting the space, said the strategy has ‘blown up’ in the last few years.

In the latest episode of the Second Thoughts podcast, StepStone’s Jeffrey Giller discusses the firm’s plans for deployment and the runway for growth in the real estate secondaries market.

The record fundraise bests a previous mark set by Goldman Sachs as the manager aims to take advantage of tariff turmoil.

As high interest rates, depressed values and fluctuating markets continue to squeeze investors, real estate secondaries is flourishing.