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Europe-Focused Funds of Funds in Market – September 2012

by Jessica Duong

  • 13 Sep 2012
  • PE

A geographic breakdown of Preqin’s funds in market data reveals that of the 158 fund of funds vehicles that are currently raising capital. Forty-five percent include a European fund focus in their strategy in some manner, and 21% select Europe-focused funds to be the primary target for investment. The 21% represents 33 private equity fund of funds vehicles, which are targeting an aggregate €4.4bn. To date, €1.5bn has been raised by the 33 Europe-focused funds, which are mostly diversified in terms of industry focus. Furthermore, the data reveals that the average fund size is €218.1mn.

The largest Europe-focused fund of funds in market with regards to target size is Euro Choice V, which is aiming to raise €720mn. The private equity investment program, managed by Switzerland-based firm Akina, focuses on the mid and lower end of the European market. Euro Choice V’s strategy focuses on investments in both the primary and secondary markets, targeting buyout, growth capital and, selectively, special situations fund investments. In July 2012, the vehicle had an interim close on €173.5mn.

The next two largest funds of funds that are currently raising capital are both managed by LGT Capital Partners, an investment firm that is also based in Switzerland. Crown Premium V and Crown European Buyout Opportunities III are targeting €700mn and €600mn respectively. The latter will target small- to mid-cap buyout funds in Europe, while the former will invest predominantly in the medium-sized buyout segment, as well as selectively seeking opportunities within the special situations and venture/growth capital segments.

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