Fund of funds managers have the ability of gaining exposure to a wide range of fund types within the private equity asset class through a number of different routes. Preqin’s Investor Intelligence currently tracks 262 fund of funds managers actively investing in private equity. Of this group, 50% are based in North America, 34% in Europe, and the remaining 16% in economies or regions outside of North America and Europe.
AlpInvest Partners is the largest of these private equity fund of funds managers in terms of total private equity assets, with HarbourVest Partner and Goldman Sachs AIMS Private Equity being the second and third largest respectively. With $45.5bn currently invested in the private equity asset class, AlpInvest Partners holds a diversified investment portfolio by fund type and geography. It has demonstrated a particular preference for Europe-focused buyout vehicles, although it also has exposure to a range of other fund types and geographies. AlpInvest Partners invests in private equity through a number of fund of funds, secondaries and co-investment multi-manager vehicles that it has raised, as well as through a number of separate account mandates that it manages.
HarbourVest Partners is also a very active fund of funds manager in private equity, and currently has $35bn invested in private equity. The fund of funds manager splits its exposure to the asset class through primary (71%), secondary (15%) and direct investments (14%), and its previous commitments demonstrate its preference for US-focused buyout funds. HarbourVest Partners has raised a number of private equity vehicles in the past, with seven funds of funds currently in market. These vehicles have an aggregate target of almost $3bn, and have so far garnered an amount just shy of $1.5bn of LP commitments towards this total.