Liquid raises $570m secondaries fund

The real estate secondaries specialist has raised a fourth fund, a year after closing its third fund on $720m.

San Francisco-based Liquid Realty Partners has closed on Liquid Realty Partners IV (LRP IV) with $572.3 million (€391.4 million) of capital, raising 43 percent more than the vehicle’s original $400 million target.

The latest fund follows Liquid’s third fund, Liquid Realty Partners III, which closed last year on $720 million. More than 70 percent of limited partners in the firm’s previous fund made follow-on commitments to LRP IV.

“The [mix of limited partners] is pretty substantially the same,” said Scott Landress, managing principal and chief executive officer of Liquid Realty. “Our investors are happy with what we’re doing and secondary sellers are very happy to work with us as well.” About a third of LRP IV has already been invested.

Landress and managing principal and chief investment officer Jeff Giller will oversee the new fund, which will invest in all types of real estate funds, partnerships and trusts globally. More than half of Liquid’s past investments were located outside the US.
“Our investment activity really follows where the market opportunities are,” said Giller. “That’s why we’ve got a fairly high degree of exposure in Europe and the UK right now. We continue to find opportunity in the US and Europe even though the markets are mature because real estate is an inefficient business and there’s always the opportunity to find attractive returns even in mature markets.”

Liquid Realty has also been growing its talent pool this year. The firm added a secondaries analyst, Stephen Maxon, to its acquisitions group this summer, and most recently hired Krista Jones as a fund controller, and Scot Marsh, who joined the firm this month as a senior controller.
The San Francisco-based firm also has plans to open an East Coast office in New York to debut next year.