Thus far in 2014, 33 private equity fund of funds vehicles have achieved final closes, having raised an aggregate $8.1bn in investor capital commitments. Preqin’s Investor Intelligence database shows that the funds invest in a range of fund types, including buyout, venture capital, growth and distressed private equity vehicles. Geographically, 50% of these funds of funds focus on opportunities in the US, 31% in Europe, and the remaining 19% in other economic regions, such as Asia and the BRIC region.
HarbourVest Partners has raised the largest number of funds of funds so far in 2014, having held final closes for six of its vehicles. Hamilton Lane, SL Capital Partners and Capital Dynamics have also enjoyed recent success for their fundraising efforts; all three firms closed two funds of funds over the past 12 months. Of the 24 firms that closed a fund of funds vehicle this year, 56% are headquartered in North America, 41% in Europe and 3% in Asia.
Of the funds of funds to hold a final close in 2014 YTD, ATP Private Equity Partners V secured the largest proportion of capital, having held a final close on $1.1bn. The vehicle is the fifth to be raised by fund manager ATP Private Equity Partners, and focuses on investments into buyout, venture capital, distressed debt and secondaries funds that target opportunities in North America and, to a lesser extent, emerging markets. ATP Private Equity Partners pursues primary, secondary and direct routes into the asset class, and will aim to make 20 fund investments in its lifetime.
Ardian Secondary Fund VI SICAR is the second largest fund of funds to hold a final close in 2014 YTD. The vehicle, raised by fund of funds manager Ardian, held a final close in April 2014 having raised $1bn. Ardian Secondary Fund VI SICAR is a side car for Ardian Secondary Fund VI, and focuses on primary commitments to US, Europe and Asia-focused private equity vehicles.