Two Sigma Pauses Real Estate Fundraising, Cuts Leaders

Two Sigma Investments has paused fundraising and new acquisitions at its real estate division after the strategy raised less than half of its $2 billion target. The New York-based firm is cutting several senior executives, including the unit’s chief investment officer.

Rich Gomel, a partner and chief investment officer of Two Sigma’s real estate business, is leaving with several senior colleagues, according to people familiar with the matter. Two of the division’s three remaining partners and one of its two heads of data science are also departing.

A smaller team will manage the division’s existing portfolio. Plans to raise more capital and make new investments have been suspended.

The changes come during a slowdown in private real estate fundraising. Higher interest rates have reduced property valuations and extended the time required to sell investments. Private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly amount since early 2013, according to PEI Group data.

Two Sigma began developing its real estate business in 2019, initially using the firm’s own capital. It opened its Real Estate Opportunity Fund to outside investors in 2024. The strategy focused mainly on residential and industrial properties, with selected investments in hotels and offices.

The division used Two Sigma’s quantitative investment methods and data analysis to assess property markets, including supply, demand and potential investment opportunities.

The Teacher Retirement System of Texas committed about $75 million to the main real estate fund and a further $60 million through a co-investment strategy in 2025. Two Sigma manages approximately $85 billion in assets across its businesses.

Tom Hill, a former vice chairman at Blackstone, joined Two Sigma full-time in 2021 to lead its private investment operations. He previously served as chief executive of the real estate business and left the firm in 2025.

The real estate cuts follow organizational difficulties elsewhere at Two Sigma, including tensions between its co-founders in recent years.