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Private Equity Fund of Funds Managers as Global Investors

by Joe Childs

  • 17 Jun 2010
  • PE

By their nature, private equity fund of funds managers tend to have a diverse investment scope. They often commit capital to strategies and regions that are avoided by many individual institutional investors and are underserved by the private equity industry in general. Preqin’s Investor Intelligence database contains profiles for 289 active private equity investors that manage funds of funds, many of which have previously invested in regions and countries outside of the industry’s traditional markets of North America and Europe.

Asia has been popular among fund of funds managers in the past, with 133 of these firms having previously committed to funds seeking opportunities in the region. One-quarter of all fund of funds managers are known to have invested in vehicles targeting China, and a similar proportion have participated in funds investing in India. Private equity funds investing in Japan are known to have gained support from 40 managers of funds of funds in the past, while 26 have committed to funds targeting South Korea, 22 have sought exposure to Hong Kong, 21 have invested in funds including Singapore within their scope, and 19 have allocated capital to vehicles considering opportunities in Thailand. A total of 31 fund of funds managers are known to have invested with private equity firms investing in Australia.

Funds investing in South and Central America are known to have received commitments from 42 different managers of funds of funds. Private equity vehicles looking for opportunities in Brazil have been supported by 16 fund of funds managers, while 13 and 12 such firms have committed capital to funds investing in Mexico and Argentina respectively. The number of fund of funds managers that are known to have gained exposure to Africa is 25, with 12 having invested in South Africa and 11 having participated in funds investing in the North Africa region. Eight managers of funds of funds have invested in funds targeting the Middle East and 21 have sought to gain exposure to Russia.

For further details of the previous investments and future private equity investment plans of all types of institutional private equity investors, including fund of funds managers, please see how Investor Intelligence can assist you.

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