Mumbai, a bustling metropolis and financial hub, stands witness to a remarkable shift in the Asian real estate market as Aquilius Investment Partners successfully raises $1.1 billion for its second Asia Pacific real estate secondaries fund. This fundraising achievement not only establishes it as the largest fund of its kind in the region, but also underscores the growing significance of real estate secondaries in the alternative investment landscape.
Founded by former executives from leading firms, Aquilius has emerged as Asia's largest real estate secondaries platform. The firm announced that this fundraising includes over $750 million for AIP Secondary Fund II, surpassing its initial target of $700 million. In comparison, the firm raised just over $400 million for its inaugural fund in 2023, reflecting a robust interest in this investment strategy.
The rise of secondaries—transactions where investors acquire existing stakes in private funds—has been fueled by a global demand for alternative investments. According to Preqin, the global alternatives assets are predicted to reach $29.2 trillion by 2029, with secondaries expected to grow at an impressive annual rate of 13.1%. This growth is largely driven by slow exits and an increasing appetite for private wealth, creating a fertile ground for investments in the region.
Aquilius has already deployed approximately 50% of the raised capital across eight transactions, reflecting its proactive approach in capitalizing on market opportunities. The firm's founding partner, Christian Keiber, emphasized that while one third of global private market assets under management (AUM) are located in Asia, less than 10% of secondaries capital is currently allocated here. He stated, "This presents a generational buying opportunity amidst an environment characterized by slow exits and regulatory changes."
The client base for Aquilius primarily includes sovereign wealth funds and pension funds from Asia and the Middle East, benefiting from their proximity and understanding of the market dynamics. As Aquilius continues to solidify its position in the secondaries market, it highlights the evolving landscape of real estate investment in Asia, offering new avenues for investors looking to leverage the region's potential.
