Active Secondary Fund of Funds Managers – January 2013

by Patrick Adefuye

  • 03 Jan 2013
  • PE

Preqin's Secondary Market Monitor database profiles 37 dedicated secondary fund of funds managers. The majority of these (54%) are headquartered in the US, with another 19% headquartered in the UK. The other profiled managers are based in Japan, France, Norway, Finland, Switzerland, Israel and the United Arab Emirates. These managers typically have a broad mandate in terms of fund types, seeking interests in all types or a combination of fund types including buyout, venture capital, growth capital, mezzanine and distressed debt funds. NorgesInvestor is an exception to this, and has a preference for buying interests in Nordic-focused buyout funds.  This diversified approach typically also applies in terms of geography. Seventy-eight percent of the managers profiled will invest in US-focused vehicles, while 73% will invest in Europe and 56% in Rest of World regions, which includes regions such as Asia and Latin America. Forty-six per cent of the managers will consider investing in Europe, US and Rest of World.

In terms of assets, the largest secondary fund of funds manager profiled, by the total amount of capital raised in the last 10 years, is France-headquartered AXA Private Equity. In total in that time period, it has raised $12.9bn, a figure that was boosted recently by the $7.1bn closing for AXA Secondary Fund V in June 2012. The next largest secondary fund of funds manager by capital raised in the last 10 years is US-headquartered Lexington Partners, with a total of $12.0bn, followed by UK-headquartered Coller Capital with $10.3bn.

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