Real‑estate managers increasingly turn to secondaries to free capital while keeping quality assets. In London, Kilian Toms, a managing director at CBRE Investment Management, recalls a meeting where a value‑add fund’s long‑term investor departed after a secondary purchase. The mood was somber, underscoring the emotional cost of selling stakes, and highlighted the need for structured exit strategies.

Secondaries have become a permanent channel for liquidity, as managers avoid selling assets outright. Over the past decade, the secondary market has matured, offering structured deals that preserve portfolio quality. This trend also attracts institutional investors seeking diversification without committing to primary fund mandates and stable returns.

The emotional tone at the London meeting illustrates how secondary exits can strain relationships, yet the financial benefits remain clear. By trading stakes rather than liquidating holdings, firms secure cash while maintaining exposure to growth assets. Investors find this route appealing because it offers liquidity while preserving long-term upside, and secondaries will continue to shape capital allocation decisions for real‑estate funds worldwide.