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Private equity fund of funds managers close vehicles short of targets.

by Hanna Ohlsson

  • 09 Jul 2009
  • PE

The first half of 2009 has seen several private equity fund of funds managers struggling with raising sufficient capital from investors. Of the 32 private equity fund of funds reaching a final close thus far in 2009, as much as 68% closed short of their initial fundraising targets and several private equity fund managers have also been seen to extend their fundraising periods in attempts to attract further commitments. One such fund manager is Amanda Capital which reached a final close on March 31st 2009 for its vehicle, Amanda IV West. The private equity fund of funds originally hoped to raise EUR 150 million in commitments from investors by December 2008, but finally decided to close on no more than EUR 90 million after keeping the fund open to investors for three additional months.

In extension, the struggle in fundraising for private equity fund of funds may mean that fund of funds as an investor type will be less active than in previous years with less capital to commit to direct private equity funds.

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