Preqin’s Funds in Market online service tracks 156 private equity fund of funds vehicles that are currently on the fundraising trail, 42% of which include European opportunities within their geographic foci, and 21% that focus predominantly on investment opportunities within this region. The 42% represents 66 vehicles which are looking to raise an aggregate $35.4bn in capital commitments, which will focus on a range of fund types and industries. Additionally, this data shows that the average size of these funds is $300mn.
The largest of this sample of private equity fund of funds vehicles is Abbott Capital Private Equity Fund VII, which is being raised by US private equity fund of funds manager Abbott Capital Management. The vehicle has a target of $1bn, and focuses primarily on opportunities in Europe and the US. Abbott Capital Private Equity Fund VII divides its investments between buyout, venture capital and special situation funds, and allocates up to 20% of its capital to secondary market opportunities. The fund began fundraising at the start of 2013, and is yet to hold an initial close.
The second largest private equity fund of funds vehicle currently in market, which includes an allocation to European opportunities, is Crown Premium V. The fund has a target of €700mn, and is being raised by Europe-based LGT Capital Partners. It has a main focus on European investments, but also looks to the US for opportunities. Crown Premium V primarily looks to invest in medium-sized buyout vehicles, although it also selectively invests in special situation, venture capital and growth funds. The fund will focus predominantly on primary investments, but will also take an opportunistic approach towards purchasing fund interests on the secondary market.