The California-based fund of funds manager closed Keystone Private Equity Opportunities II after securing commitments totalling $74.5 million. The vehicle targets small buyout, distressed debt and energy funds investing in the US, and also looks to acquire fund stakes on the secondary market. The fund of funds is half the size of its hard cap of $150 million, with Keystone National Group looking to build on encouraging performance in 2009 and preferring to avoid dilution to early investors in the fund.
After holding a first close on $40 million in late 2008, the firm spent 2009 putting the capital raised by its second vehicle to work. The fund of funds has made commitments to 12 private equity funds to date and is expected to invest in 20 funds in total, typically committing $3-7 million to each opportunity.
Keystone National Group closed its first private equity fund of funds in November 2007. The vehicle, which raised a total of $75 million, pursued a similar strategy to the firm’s latest offering, primarily targeting small buyout opportunities. It was fully committed by the end of 2008, having allocated capital to 15 private equity funds.
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