Liquid Realty Partners

Liquid Realty Partners was a private equity real estate firm that invested indirectly in commercial property by acquiring interests in existing real estate funds, partnerships, joint ventures, separate accounts, unit trusts and other private investment vehicles in the private equity secondary market.

Liquid Realty Partners
IndustryPrivate equity secondary market
Founded2001
FounderScott M. Landress and Mark L. Berman
Defunct2012
HeadquartersSan Francisco

During its period of operation from 2001 to 2012, Liquid accepted $1.5 billion in capital commitments and closed 47 investments.[1]

The fund is notable for its £435 million purchase of Jersey property unit trusts in May 2006, the largest secondary real estate acquisition at that time.[2] This record was superseded by the $3 billion transaction between The Blackstone Group and CalPERS in November 2015.[3]

History

The firm was founded in 2001 and was launched in 2002 by Scott M. Landress and Mark L. Berman.[4]

In May 2006, the company acquired a portfolio of Jersey property unit trusts for £435 million (US$775 million), believed to be the largest secondary real estate acquisition ever completed at that time.[2]

In December 2007, the company raised $572.3 million for its 4th fund.[5][6][7]

In July 2008, the company invested £30 million in a fund focused on office properties in the West End of London.[8]

In April 2012, the company laid off its investment staff after failing to raise new funds.[4]

In July 2012, the company sued a company run by its former executives for allegedly stealing trade secrets.[1]

In 2017, Scott Landress, the founder of the company, was barred from the securities industry by the U.S. Securities and Exchange Commission and fined a $1.25 million civil penalty because he illegally took a £16.25 million fee from the funds and deposited the funds into his personal account, without notifying the limited partners beforehand.[9]

References
  1. Calvey, Mark (July 31, 2012). "Liquid Realty Sues Companies Run By Its Former Execs". The Registry.
  2. "Liquid Realty Acquires GBP 435 Million Real Estate Secondary Portfolio; Acquisition Creates Global Leader in Real Estate Secondaries" (Press release). Business Wire. May 3, 2006.
  3. "Strategic Partners Fund Solutions to Acquire $3 Billion of Secondary Real Estate Interests from CalPERS in Largest Secondary Transaction to Date" (Press release). The Blackstone Group. November 12, 2015.
  4. Karmin, Craig (April 3, 2012). "Short of New Funds, Firm Takes a 'Pause'". The Wall Street Journal.
  5. "Liquid Realty Raises $570 Million Real Estate Secondaries Fund" (Press release). Business Wire. December 13, 2007.
  6. Calvey, Mark (December 23, 2007). "Realty fund shoots past investor goal". American City Business Journals.
  7. "Liquid Realty Partners raises $572M fund for real estate". American City Business Journals. December 13, 2007.
  8. "San Francisco's Liquid Realty invests $60 million in United Kingdom fund". American City Business Journals. July 21, 2008.
  9. Brush, Pete (February 7, 2017). "SEC Bars Real Estate Investor Over His $20M Fee". Law360.
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