IREI: BGO Strategic Capital Partners - The real estate secondaries market has matured to more than a liquidity solution
In a recent interview with Institutional Real Estate, Inc., Cherine Aboulzelof, Managing Partner and Co-Head of BGO Strategic Capital Partners, discusses the maturation of the global real estate secondaries market and how it has evolved into a strategic capital solution rather than just a tool for liquidity. As traditional LP-led secondaries have given way to direct secondaries and GP-led recapitalizations, BGO sees opportunity in working with value-added and opportunistic small- and mid-cap sponsors navigating a constrained capital environment. The current market dynamics—conservative lending, valuation resets, and fundraising challenges—have created fertile ground for BGO’s targeted approach, particularly in sectors like multifamily housing and supply chain infrastructure.
Aboulzelof highlights BGO’s distinct investment strategy, which includes maintaining control through direct deals, focusing on bilateral partnerships with niche sponsors, and leveraging a globally experienced team. With a diversified allocation across the U.S., Europe, and Asia-Pacific, BGO's approach centers on identifying high-quality assets and sponsors best positioned for long-term success. Looking forward, she predicts the continued integration of secondary capital into mainstream portfolio construction for both fund sponsors and institutional investors, as the strategy proves its long-term value.
