Key Takeaways
- • Two Sigma Investments has halted fundraising and new investments at its real estate unit and is cutting senior staff after raising less than half of its roughly $2 billion target, according to Bloomberg News citing people familiar with the matter.
- • Rich Gomel, the real estate unit's partner and chief investment officer, is departing along with two of the division's three remaining partners and one of its two heads of data science; a reduced team will manage the existing portfolio.
- • Seth Platt, co-founder David Siegel's representative on the $85 billion firm's two-person management committee, plans to leave once a replacement is found, forcing Siegel to name a third proxy in about two years.
- • The departure follows a dispute between Siegel and co-founder John Overdeck, including disagreement over whether Platt should serve as co-chief executive alongside Carter Lyons.
- • Private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since 2013, per PEI Group data cited in the reports.
Summary
Two Sigma Investments has stopped fundraising and new investments at its real estate unit and is cutting senior staff there, after the business raised less than half of its roughly $2 billion target, Bloomberg News reported, citing people familiar with the matter. Rich Gomel, the unit's partner and chief investment officer, is departing along with two of the division's three remaining partners and one of its two heads of data science. A reduced team will remain to manage the existing portfolio. Two Sigma began investing in real estate in 2019 with internal capital and opened its Real Estate Opportunity Fund to outside investors in 2024, focusing on housing and industrial assets. The Teacher Retirement System of Texas committed about $75 million to the main fund and another $60 million through a co-investment strategy. Two Sigma declined to comment.
The retreat reflects a difficult market for new real estate vehicles. Private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since 2013, according to PEI Group data cited in the reports. Although a quant manager applying predictive models to property markets offered a differentiated pitch, first-time real estate funds from managers outside the asset class have faced the same allocator reluctance as others. Two Sigma's experience suggests that a strong brand in liquid markets does not automatically transfer to private real estate.
Separately, Bloomberg reported that Seth Platt, David Siegel's representative on the firm's two-person management committee, plans to leave once a replacement is found. Platt's exit will require Siegel to select his third proxy on the committee in about two years, amid an ongoing dispute between Siegel and co-founder John Overdeck. Siegel's earlier representative, former Lazard general counsel Scott Hoffman, resigned in March 2026, and Platt's departure follows months of disagreement over whether he should also serve as co-chief executive alongside Carter Lyons, Overdeck's appointee, Hedgeweek reported. Platt will remain chief investment officer and chief operating officer of Siegel's family office.
Performance has held up so far: the Absolute Return Enhanced fund gained 16% through September, according to Bloomberg, and the firm has said 2026 is on track to be one of its strongest years. Investors will watch whom Siegel names to the committee and whether the founders' dispute affects the firm's other businesses.
The retreat reflects a difficult market for new real estate vehicles. Private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since 2013, according to PEI Group data cited in the reports. Although a quant manager applying predictive models to property markets offered a differentiated pitch, first-time real estate funds from managers outside the asset class have faced the same allocator reluctance as others. Two Sigma's experience suggests that a strong brand in liquid markets does not automatically transfer to private real estate.
Separately, Bloomberg reported that Seth Platt, David Siegel's representative on the firm's two-person management committee, plans to leave once a replacement is found. Platt's exit will require Siegel to select his third proxy on the committee in about two years, amid an ongoing dispute between Siegel and co-founder John Overdeck. Siegel's earlier representative, former Lazard general counsel Scott Hoffman, resigned in March 2026, and Platt's departure follows months of disagreement over whether he should also serve as co-chief executive alongside Carter Lyons, Overdeck's appointee, Hedgeweek reported. Platt will remain chief investment officer and chief operating officer of Siegel's family office.
Performance has held up so far: the Absolute Return Enhanced fund gained 16% through September, according to Bloomberg, and the firm has said 2026 is on track to be one of its strongest years. Investors will watch whom Siegel names to the committee and whether the founders' dispute affects the firm's other businesses.
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