Global real assets investment firm Townsend has raised more than $2 billion for the latest vintage of its real estate secondaries strategy. The firm is now working toward a $3 billion fundraising target as demand for liquidity solutions continues across private real estate markets.
The capital raised includes discretionary parallel vehicles, investor mandates, and co-investment commitments.
Townsend has focused on private market real estate secondaries for nearly two decades. During that time, it has expanded its presence in a market where investors buy existing interests in private real estate funds rather than investing in new funds.
The company said prolonged market illiquidity has created more opportunities for secondary transactions. As a result, both limited partners (LPs) and general partners (GPs) are increasingly seeking liquidity across their portfolios.
Therefore, the need for dedicated secondary capital continues to increase.
Over the past 18 months, Townsend has invested more than $1 billion across 11 secondary transactions. According to the firm, this represents nearly half of the capital raised so far for the strategy.
In addition, Townsend has developed a pipeline of investments expected to close before the end of the year. The firm said these opportunities could help investors deploy capital more efficiently.
The anticipated portfolio has been sourced at an average entry discount of 25%, according to Townsend.
The latest strategy combines both GP-led and LP secondary transactions.
Most importantly, Townsend plans to focus on alternative real estate sectors where it sees long-term demand. These sectors include:
Residential housing
Logistics
Data centers
Industrial outdoor storage
Medical office properties
The firm said these segments continue to present opportunities for portfolio diversification and capital deployment.
Anthony Frammartino, Chairman and CEO of Townsend, said investors increasingly use secondary transactions to recycle capital while maintaining portfolio diversification across different investment periods.
He added that some investors are also building dedicated secondary allocations to gain broader access to investment opportunities under attractive terms.
Frammartino also noted that many fund managers are turning to the secondaries market because institutional capital remains inconsistent. According to him, these transactions help managers balance investor distributions while continuing to maximize portfolio value.
He said Townsend's industry relationships, market knowledge, and investment network position the firm to support both investors and fund managers through secondary capital solutions.
Townsend has raised dedicated capital for its secondaries strategy since 2007.
To date, the firm has completed more than 170 transactions worth over $9 billion. These transactions include secondaries, recapitalizations, and other liquidity and capital solutions across private real estate markets.
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