Aquilius Investment Partners Raises $750 Million for Asia-Focused Real Estate Secondary Fund Amid Market Shift
## Aquilius Investment Partners Closes Second Asia-Focused Real Estate Secondary Fund at $750 Million
**Aquilius Investment Partners**, a Singapore-based real estate investment firm founded by veterans from **Blackstone** (NYSE: BX) and **Partners Group**, has announced the final close of its second flagship real estate secondaries program, AIP Secondary Fund II L.P. (AIP SF II). The fund secured over **US$750 million** in capital commitments, surpassing its initial target of **US$700 million** and reaching its hard cap. Including associated vehicles, the firm raised a total of **US$1.1 billion** for this program. This oversubscribed fund attracted a diverse array of global institutional investors, including sovereign wealth funds, pension funds, financial institutions, and family offices.
## Strategic Focus on Asia-Pacific "New Economy" Sectors
AIP SF II is strategically positioned to engage in both LP-led and GP-led transactions across the **Asia-Pacific region**. The fund's investment strategy targets "new economy" real estate sectors, which include logistics, life sciences, data centers, hospitality, and living. Primary markets for **Aquilius** encompass **Australia**, **India**, **Japan**, and **South Korea**, with selective activity in **China**, **Hong Kong**, and **Southeast Asia**. The firm, established in 2021 by **Bastian Wolff** and **Christian Keiber**—both bringing extensive experience from **Partners Group** and **Blackstone**, respectively—has already deployed 50 percent of its total commitments across eight secondary transactions. This new fund builds on the success of its **$400 million** debut vehicle raised in 2023, bringing Aquilius's total assets under management to approximately **$2 billion**.
## Real Estate Secondaries Gain Prominence Amidst Market Shifts
The successful fundraising by **Aquilius** highlights a significant and expanding trend within the global real estate secondary market. This segment, though still relatively niche, is demonstrating considerable resilience and growth in a broader investment landscape characterized by slower exits and higher interest rates. According to CBRE Investment Management, the global market for real estate secondaries reached **$24.3 billion** in 2024. More broadly, the secondary market recorded a historic first half in 2025, with total transaction volume reaching **$103 billion**, a **51% increase** from H1 2024. This growth trajectory places the market on pace to exceed **$210 billion** in total volume by year-end 2025, surpassing initial estimates. This expansion reflects robust supply driven by limited distributions from traditional IPO and M&A pipelines, coupled with diversified and expanding pools of secondary capital fueling demand. Dedicated available capital in the secondary market rose to an all-time high of **$302 billion** in H1 2025.
## Broader Context and Implications for Private Markets
The increasing activity in real estate secondaries, exemplified by **Aquilius's** recent close, underscores its role as a resilient "bright spot" in an otherwise muted investment cycle. Major global players such as **Blackstone** (NYSE: BX), **Ares Management** (NYSE: ARES), and Neuberger Berman have also intensified their engagement in this space, validating the growing strategic importance of secondary transactions. Investors are increasingly seeking efficient avenues to gain exposure to **Asian real assets**, especially in "new economy" sectors that benefit from structural tailwinds like e-commerce and technological advancements. For instance, the industrial sector, driven by e-commerce and logistics demands, continues to exhibit robust performance, with Q3 2024 industrial vacancy rates holding steady at **6.8%**, well below pre-pandemic averages. This sustained demand for certain real estate asset classes, coupled with the need for liquidity solutions in private markets, is fueling the secondary market's expansion.
## Outlook: Continued Growth and Strategic Opportunity
The outlook for the real estate secondary market, particularly in the Asia-Pacific region, points towards continued growth. The ability of firms like **Aquilius** to attract significant capital commitments, even in a challenging macroeconomic environment, indicates sustained investor interest in both the liquidity provisions and the strategic investment opportunities offered by secondaries. As private markets continue to evolve, the emphasis on efficient portfolio management and access to diversified, high-growth assets is expected to drive further innovation and capital deployment in this segment. The firm, now employing **30 professionals**, is well-positioned to scale its platform, capitalizing on the ongoing demand for sophisticated real estate investment strategies.
Edgen Stock·Nov 03 2025, 13:16
