Although secondaries fundraising during 2010 is unlikely to exceed the record-breaking fundraising of 2009, which saw 21 secondaries funds raising an aggregate USD 22.7 billion, there are still managers actively looking to raise large amounts of capital for secondary market investments. AXA Private Equity is the latest manager to commence fundraising for a vehicle dedicated to purchasing LP interests in private equity funds. AXA Secondary Fund V is likely to follow the same strategy as its predecessors, purchasing stakes in a diverse range of private equity funds globally. AXA Private Equity is looking to raise between USD 3.5 billion and USD 4 billion for the vehicle.
There are several other managers currently in the process of raising large secondaries funds. Lexington Partners is in the last stages of fundraising for Lexington Capital Partners VII, which expects to hold a final close before year-end with USD 6 billion in capital commitments. The vehicle looks to purchase LP stakes primarily in established global buyout, venture capital and mezzanine funds through secondary transactions. Coller Capital is expected to raise USD 5 billion for a secondaries fund. Coller Capital typically purchases investors’ stakes in venture capital, buyout and mezzanine funds and also acquires direct portfolios of companies from institutions, corporates, government bodies and family offices.
Preqin’s Secondary Market Monitor contains profiles for over 200 traditional secondary market buyers actively seeking to purchase stakes in private equity funds through dedicated secondaries funds or primary funds of funds with an allocation to secondary market investments.