Neuberger Berman has wrapped up fundraising for its second commingled real estate private equity secondary fund, NB Real Estate Secondary Opportunities Fund II LP (RESOF II), pulling in $1.05 billion—exceeded its original $800 million target. 

RESOF II zeroes in on real estate secondaries, acquiring interests in established funds to offer liquidity to limited partners and recapitalizing existing assets. Investors include corporate and public pension funds, endowments, foundations, insurance firms, family offices, and high-net-worth individuals from North America, Europe, and Asia. In addition, contributions from employees and limited partners helped push the fund past its goal. 

RESOF II sets its sights on middle-market real estate deals in the US and Europe, where Neuberger Berman sees room to be more selective with investments. Rather than acquiring entire portfolios, the firm takes a “bottom-up asset-by-asset underwriting rather than top-down portfolio analysis.” 

“We are excited by the long-term opportunity in real estate secondaries and are humbled by the number of new and existing clients that have entrusted us with their precious capital for this strategy,” said Scott Koenig, head of Neuberger’s real estate secondaries business. “Our goal is to construct a well-diversified portfolio of seasoned assets acquired at attractive prices via the still-expanding secondary market.” 

The fundraise decisively beat its predecessor fund, NB Real Estate Secondary Opportunities Fund LP, which raised $712 million. 

Neuberger Berman currently manages $508 billion across equities, fixed income, private equity, real estate, and hedge funds, further solidifying its position as a key player in the alternative investment space. 

Simpson Thacher & Bartlett LLP served as legal counsel to Neuberger Berman.