Velocis Closes Secondaries Fund

April 21, 2023

Investment manager Velocis has held a final close on $172 million of equity for its third fund targeting secondary-market real estate investments.

The Dallas-based fund operator wrapped up its capital campaign last week for Velocis Secondary Partners 3, above the vehicle’s $100 million to $150 million target. The unleveraged fund
is roughly 20% invested. Velocis doesn’t use a placement agent.

Fund 3 aims to produce an 18% return by investing in operator- and limited partner-led recapitalizations of funds and property portfolios. The dislocated capital markets are likely to provide investment opportunities as owners and vehicle managers hampered by the recent runup in interest rates seek liquidity.

The fund focuses on the U.S., with 80% of its equity set to be invested there, but it can also invest 10% apiece in Asia and Europe.

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