‘As Good a Time as It Can Get’ to Invest in Secondaries, Says Townsend

The Townsend Group believes a perfect storm of market pressures has created an attractive entry point for both LP-led and GP-led real assets secondaries.


The real assets advisor, which oversees $252bn worth of client assets, is advising LPs top capitalize on the macro uncertainty stemming from the new administration’s economic policies by acquiring high-quality assets at significantly discounted valuations.

June 2025

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Risk and Opportunity in Late-Stage Fundraises

With slowing transaction volumes, many closed-end funds are taking a year or more to complete their capital raises. As fundraises grind on, funds accrue “catch-up interest”, retroactive management fees, and other expenses that act as a drag on returns. Without significant offsetting asset appreciation, investors committing to these funds could be starting in a significant hole. We have seen examples where a deficit as high as 3% of an investor’s total commitment exists almost entirely because of fees and interest.


As markets shift, this dynamic will invert at some point, and investors will find opportunities to buy into funds with built-in gains due to appreciation. Even today, determined investors can find embedded value in some cases. Either way, investors should consider their starting point when committing late in a fund’s capital raise.

May 2025

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The Macro Implications of Tariffs: An Interview with Asieh Mansour

We recently sat down with Asieh Mansour to discuss tariffs, their potential long-term economic impacts, and their implications for investors. Asieh has been a Senior Advisor to Townsend and a member of our Global Macro Committee since 2013. She brings a wealth of knowledge and insight to our investment process, drawing upon 30 years of experience in global economic research and strategy, as well as a PhD in Economics.

April 2025

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The Trump Factor and Commercial Real Estate

The new year is already well underway, and the new U.S. administration is off to a fast start – announcing major initiatives and policy changes on what seems to be a daily basis. In this rapidly evolving market, Townsend’s research teams have been evaluating several developments that could impact Real Estate markets. The Trump Factor discusses many of the topics that we have been considering.

March 2025

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Why The Time is Right for Real Estate Secondaries

Why The Time is Right for Real Estate Secondaries delves into the evolving landscape of real estate investment amidst significant market pressures. With over half a trillion dollars in U.S. real estate debt maturing annually, coupled with high interest rates and declining asset values, both sponsors and limited partners are facing unprecedented challenges. This environment has led to diminished transaction volumes and liquidity issues, prompting a shift towards secondary transactions as a compelling investment strategy. The piece argues that while traditional opportunistic strategies are faltering, the secondary market offers unique opportunities for investors willing to navigate this complex terrain. As real estate secondaries currently represent a small fraction of the overall market, the article suggests that early adopters may gain significant advantages in this emerging sector.

January 2025

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The Continuing Evolution of the Secondaries Market

The Continuing Evolution of the Secondaries Market provides an in-depth analysis of the shifting landscape of secondary transactions in real estate private equity. It distinguishes between traditional secondaries, where limited partnership interests are sold between investors with minimal sponsor involvement, and non-traditional secondaries, which encompass a broader range of transactions where sponsors play a more active role. The piece highlights the advantages and risks associated with these transactions, emphasizing how non-traditional secondaries can offer good returns and risk control for investors. As the market evolves, the article suggests that the ongoing liquidity challenges faced by real estate sponsors present significant opportunities for secondary investing.

January 2025

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Trump 2.0 and the Implications for CRE

Presidential elections can trigger shifts in economic policies and regulatory frameworks, thereby influencing various sectors, including commercial real estate (CRE). Historically, property markets have responded more significantly to the macroeconomic landscape than to specific election results.

November 2024

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Navigating the Real Estate Market Amid Changing Interest Rates

As interest rates start their downward trajectory, many investors are wondering about the impact on property values and market dynamics. Will the rates go back down to the sub-1% levels or are they expected to remain higher? How will the interest rate levels impact the real estate values?

October 2024

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What is Different in this Commercial Real Estate Cycle?

Nearly a decade after the Global Financial Crisis, investors and investment managers remain acutely focused on the cyclical nature of real estate. In this paper, Townsend’s Prashant Tewari and Christian Nye explore the key aspects of the current Commercial Real Estate Cycle.

March 2019

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Commercial Real Estate Debt Overview

Not all commercial real estate debt comes with the same risk/return trade-off. Townsend’s Prashant Tewari and Christian Nye discuss the perceived versus actual risk and why investment strategies must be evaluated methodically.

August 2018

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