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Funds of Funds Currently in Market with a Preference for Distressed Private Equity - September 2013

by Francesca Braganza

  • 19 Sep 2013
  • PE
  • PD

Preqin’s Investor Intelligence currently tracks 148 fund of funds vehicles currently in market, 38 of which have a preference for investing in distressed private equity funds. The fund of funds managers of these vehicles are based all around the world, with 62% in North America, 35% in Europe, and the remaining 3% headquartered in Asia and other regions. These 38 funds of funds focusing on distressed private equity opportunities are targeting an aggregate $10.6bn.

The largest of these funds of funds is Abbott Capital Private Equity Fund VII, which is targeting $1.3bn. The fund of funds includes an allocation to special situations vehicles within its strategy, alongside buyout and venture capital vehicles. Geographically, Abbott Capital Private Equity Fund VII targets funds focusing on opportunities in North America and Europe, although it will also consider wider global opportunities. The fund predominantly focuses on making primary fund commitments, but allocates up to 20% of its total capital to purchasing private equity fund stakes on the secondary market.

Crown Premium V is the second biggest of the 38 funds of funds in this sample, and is targeting €700mn ($989mn). Similarly to Abbott Capital Private Equity Fund VII, Crown Premium V seeks exposure to distressed private equity thorough special situations vehicles. The fund also targets buyout, growth and venture capital vehicles, and has a preference for those focusing on opportunities in Europe and the US.

Finally, NB Crossroads Fund XX is the third largest fund of funds vehicle currently in market that has a preference for distressed private equity, with a target of $750mn. The fund allocates 20-35% of its total capital to investing in distressed debt vehicles, and also considers making commitments to special situations vehicles. The remainder of its capital is split between buyout, mezzanine and venture capital funds. NB Crossroads Fund XX looks to invest in funds that focus on opportunities in the US, Europe and Asia across a diverse range of industries.

 

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