Recent Private Equity Secondaries Fund Closes – January 2013

The second secondaries fund from 17Capital, 17Capital Fund 2, has reached a final close on €208mn. 17Capital Fund 2 was originally targeting €200mn, and surpassed this amount after approximately 16 months on the road. The success of 17Capital’s fundraising effort is encouraging, given the current tough fundraising environment, in addition to the fact that the predecessor fund, which similarly targeted €200mn, only managed to garner €88mn in aggregate capital commitments in 2010. 17Capital Fund 2 aims to provide preferred equity and mezzanine financing to limited partners who are seeking early liquidity from their investments without losing the future upside. It will focus on Western European buyout vehicles and targets mature funds that have a significant proportion of commitments called.

Private equity fund of funds manager, DB Private Equity, has also closed its latest dedicated secondaries vehicle to new investors. DB Secondary Opportunities Fund II raised a total of $614mn from investors. This represented the sixth largest closing for a secondaries vehicle in 2012. The vehicle had a target of $500mn (with a hard cap target of $630mn). It aims to generate attractive risk adjusted investment returns through the acquisition of interests in buyout and venture capital vehicles on the secondary market. It will target opportunities globally, but primarily focuses on Europe and the US.