UK-based Partners Group is targeting a $1.5B fundraise for its fifth real estate secondaries program, announcing its first close Thursday with more than $650M in commitments.

The program will provide equity to existing real estate funds and invest in "quality income-producing assets," Partners said in a news release. The fund is seeded with a limited partner-led secondary portfolio made up of three global real estate funds with investments across the residential, industrial and hospitality sectors.

The real estate secondaries market is defined by funds buying shares in existing real estate funds, giving in-place investors liquidity and flexibility to navigate changing market conditions. The investment strategy is showing continued growth, as global real estate secondaries transaction volumes reached $25.1B in 2025, up from $24.3B in 2024, according to CBRE.

The company said it believes the secondaries market benefits from lower transaction volumes and slower fundraising cycles, which are forcing investors to consider alternative liquidity options. Impending debt maturities are also leading high-quality underlying assets to get repriced at attractive valuations, it said.

Kilian Toms, managing director at CBRE Investment Management who leads the real estate partners strategy, told Bisnow in October that over the last two years, the U.S. has been through the worst capital raising markets for direct and primary real estate funds since 2012. That has opened the window for more secondary investments.

Partners has been a secondaries investor for nearly two decades, investing $6B across more than 120 real estate secondaries transactions since 2008.

Its previous real estate secondaries program included Real Estate Secondary IV, which ranked among the top 25% of comparable real estate secondaries funds that closed in 2021 and 2022, the firm said, citing Preqin data.

Realized investments from Partners' prior real estate secondaries strategies had generated about $1.60 for every dollar invested, net of fees and expenses but before certain U.S. income taxes, as of Dec. 31, the firm said in an April investor presentation.

"Our real estate secondaries strategy is highly tactical, providing liquidity solutions to GPs and LPs in a capital-constrained market," Henrik Orrbeck, co-head of real estate for Partners Group, said in a release.