A New York-based firm has raised over $1B to invest in real estate secondaries, a growing segment of the investment market.

Neuberger Berman closed its NB Real Estate Secondary Opportunities Fund II LP with over $1B raised, surpassing its $800M target, it announced Wednesday.

The fund was registered in 2022, and the firm filed a report in April stating that it had raised $519.4M, according to an SEC filing.

The fund is 48% bigger than its prior fund, which had $712M in investor commitments. Like the prior fund, RESOF II is acquiring private stakes in mature real estate funds from limited partners that want liquidity, mostly in the U.S. and Europe.

These types of secondaries funds have begun to rise in popularity as investors look to cash out of their interests in other funds.  In 2023, secondaries funds closed $9.8B in transactions, with major players like Goldman Sachs, Ares and Blackstone raising over $2B each.

"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," Scott Koenig, head of Neuberger Berman's secondaries business, said in a statement. "We think this offers investors the potential for compelling risk-adjusted returns and provides a differentiated way to access the real estate asset class."