Singapore-based Aquilius Investment Partners has successfully raised $1.1 billion for its second real estate secondaries program, marking the largest fundraising of its kind for the Asia Pacific region. The capital will be used to acquire existing interests in real estate funds and assets, capitalizing on a growing need for liquidity among investors.
The firm’s flagship fund, AIP Secondary Fund II, was significantly oversubscribed, closing at its hard cap of over $750 million and surpassing its initial target of $700 million. This strong investor demand highlights a major shift in the region's property investment landscape.
Key Takeaways
- Aquilius Investment Partners raised a total of $1.1 billion for its Asia Pacific real estate secondaries program.
- The main fund, AIP Secondary Fund II, closed above its target at over $750 million, indicating strong investor confidence.
- The firm will focus on 'new economy' sectors, including logistics, data centers, and life sciences.
- About 50% of the new fund's capital has already been deployed across eight separate transactions.
Record Fundraising Amid Market Volatility
The successful capital raise establishes Aquilius as the largest real estate secondaries platform in Asia. The program attracted capital from a wide array of global institutional investors, including prominent sovereign wealth funds, pension funds, and financial institutions.
The firm's ability to raise such a substantial amount is notable given the current global economic climate. Market volatility has increased the demand for liquidity solutions, creating a favorable environment for secondaries specialists like Aquilius.
What Are Real Estate Secondaries?
The real estate secondaries market involves the buying and selling of existing investor commitments to private real estate funds. Instead of investing in a new fund from the beginning, a secondaries buyer acquires the position of an original investor (a Limited Partner or LP) who wishes to exit their investment early. This provides liquidity to the seller and allows the buyer to invest in mature, diversified portfolios.
Founding Partner Bastian Wolff described the current climate as a "generational buying opportunity for secondaries in Asia."
"This milestone fundraise is a testament to our strong track record and highlights the continued and growing appetite for Asian real estate secondaries investments among LPs, as market volatility and the need for liquidity drives deal volume to record highs," Wolff stated.
Targeting the 'New Economy'
Aquilius plans to deploy the capital into both LP-led transactions (buying stakes from existing investors) and GP-led deals (providing liquidity solutions directly to fund managers). The strategy is heavily weighted toward what the firm calls 'new economy' sectors.
These sectors are supported by long-term structural trends and include:
- Logistics: Warehouses and distribution centers driven by e-commerce growth.
- Data Centers: Essential infrastructure for the digital economy.
- Life Sciences: Specialized facilities for research and development.
- Hospitality and Living: Modern residential and lodging concepts.
This focus allows the firm to build diversified portfolios with shorter investment horizons compared to traditional real estate funds. The strategy appears to be working, as Aquilius confirmed that its new fund, AIP SF II, has already invested approximately 50% of its total commitments across eight transactions.
Fundraising Details
- Total Program Capital: US$1.1 billion
- Flagship Fund (AIP SF II) Size: US$750+ million
- Original Target: US$700 million
- Capital Deployed (AIP SF II): ~50%
A Market Driven by Liquidity Needs
The surge in the secondaries market is a direct response to changing economic conditions. Many institutional investors who committed capital to long-term real estate funds several years ago are now seeking ways to free up cash. Secondaries funds provide a crucial exit route.
Christian Keiber, also a Founding Partner at Aquilius, noted the recent surge in activity.
"The past 12 months marked a record-breaking year for secondaries volume. We are committed to being the leading provider of secondaries solutions in the Asia Pacific region — partnering with institutional investors and fund managers to deliver value through creative, efficient and scalable liquidity solutions," Keiber said.
By providing these solutions, Aquilius aims to deliver attractive, risk-adjusted returns for its own investors while helping stabilize the broader private real estate market.
Experienced Leadership Navigating Asia's Market
Aquilius was founded in 2021 by industry veterans Bastian Wolff and Christian Keiber. Wolff was previously the Managing Director and Head of Asia Pacific Real Estate for Partners Group, while Keiber served as a Managing Director for The Blackstone Group.
Together, the founders have over 15 years of experience investing in Asia, collectively deploying more than $4 billion of equity in complex liquidity deals. Their experience includes LP interest transfers, asset recapitalizations, and continuation vehicles.
The firm has quickly grown to a team of 30 professionals based in the region, giving it on-the-ground expertise to source and structure transactions. This local presence is a key advantage in navigating the diverse and often complex real estate markets across Asia Pacific. The firm's independent structure and institutional backing allow it to act quickly and discreetly, which is highly valued by sellers seeking liquidity.
