Value-Add

As managers seek liquidity without relinquishing prized assets, secondaries are becoming a permanent channel for capital flow.

Capital is once again returning to the retail sector in a big way, say Newport Capital Partners’ Derrick McGavic and Josh Kagan.

Secondaries-focused fundraising totals represented just 4% of private real estate fundraising in 2025, but the strategy continues to attract capital commitments.

Although the firms all leaned more heavily into niche strategies, they diverged on how to recalibrate their office exposures going forward.

The South Carolina-based residential giant has already raised $1.5bn in six months for the value-add multifamily vehicle.

The firm has a $3bn target and more rigid sector allocations for Realty Value Fund XII, the first launch in the global series since Angelo Gordon’s acquisition by TPG in 2023.

Texas Permanent School Fund is among the investors backing the Boston-based manager’s value-add fund targeting German and Dutch logistics properties.

For some groups, partnering with other capital providers can make it easier to take a chance on a less established fund strategy.

PensionDanmark and SamPension are both backing the Northern Europe-focused vehicle as first-time investors with the Copenhagen-based manager.

The country’s institutions are recalibrating their core-heavy strategies to focus more on value-add opportunities.