Since January 2004, 168 private equity secondaries vehicles have held a final close, contributing an aggregate $122bn to the private equity asset class. These funds have been raised by fund managers based in countries across the world, with the most significant proportions based in the US (46%), UK (15%), and Switzerland (10%).
Over the past eight years, instability in financial markets and recovering economies has contributed to variations in the number of funds reaching, exceeding, or falling below their target amounts. On the whole, 81% of the 168 secondaries funds which have held a final close either met or exceeded their target size. On the other hand, almost one fifth (19%) of all the closed secondaries vehicles failed to raise the amount originally targeted.
However, there have been fluctuations in the success of secondaries vehicles raising capital each year between 2004 and 2013 YTD. 2010 proved to be the least successful year for fund managers raising capital for secondaries vehicles. Thirty-five percent of the secondaries vehicles that held a final close during the year did not manage to achieve their target amount, although a significant proportion (65%) either met or exceeded it.
2007 saw the most successful fundraising for secondaries vehicles, with 100% of those holding a final close reaching or exceeding their target amounts. Coller International Partners V was the largest secondaries fund to hold a final close in 2007, exceeding its target by just over $1bn and raising a total of $4.8bn.
The largest secondaries vehicle to close between 2004 and 2013 YTD held its final close in June 2012, and raised more than double its target. AXA Secondary Fund V initially aimed to raise a total of $3.5bn, but actually garnered $7.1bn in capital commitments by its final close. The fund, raised by French private equity fund of funds manager, Ardian (formerly AXA Private Equity), seeks to acquire fund stakes in buyout, growth and venture capital vehicles focusing primarily on opportunities in the US and Europe.