Neuberger Berman successfully closed its NB Real Estate Secondary Opportunities Fund II LP (RESOF II) at $1.05bn, surpassing its $800m target.

The fund focuses on real estate secondaries, acquiring stakes in mature funds, providing liquidity to limited partners, and recapitalising existing assets.

The investor base includes corporate and public pension funds, endowments, foundations, insurance companies, family offices, and high-net-worth individuals from North America, Europe, and Asia. Employee and limited partner commitments also contributed to the fund’s oversubscribed close.

RESOF II primarily targets middle-market real estate opportunities in the US and Europe, where Neuberger Berman believes it can exercise greater investment selectivity. Unlike broad portfolio acquisitions, the firm employs a bottom-up, asset-by-asset underwriting approach to maximise value.

The previous vintage of the fund raised $712m, and Neuberger Berman sees continued growth potential in the real estate secondaries market. Scott Koenig, head of the firm’s real estate secondaries business, stated, “We are excited by the long-term opportunities in real estate secondaries and humbled by the trust our investors have placed in us. Our goal is to build a well-diversified portfolio of seasoned assets acquired at attractive valuations, offering compelling risk-adjusted returns.”

Neuberger Berman currently manages $508bn across equities, fixed income, private equity, real estate, and hedge funds, further solidifying its position as a key player in the alternative investment space.