Private Equity Fund of Funds Vehicles in Market

by Patrick Adefuye

  • 06 Oct 2011
  • PE

There are currently 137 private equity fund of funds vehicles seeking capital from investors. Of these, 60 have a primary focus on the US, 41 on Asia and Rest of World and 36 on Europe. In aggregate, these funds are seeking to raise at least a total of $36 billion with US-focused funds of funds seeking $17 billion; Europe-focused funds of funds seeking $9 billion and Asia and Rest of World-focused vehicles seeking $10 billion. The average amount currently being sought by funds of funds is $347 million; the average US-focused fund of funds is seeking $329 million, whereas the average Europe-focused fund of funds is seeking $381 million and the average Asia and Rest of World -focused vehicle is seeking $350 million.

One private equity fund of funds vehicle which has recently completed fund raising is RCP VII, which held a final close on $300 million at the end of September 2011. Managed by Chicago-based RCP Advisors, the fund pursues the same strategy as its predecessors, targeting North American-based lower middle market focused private equity funds with between $100 million and $1 billion in capital, which will seek to invest in companies with an enterprise value of between $25 million and $250 million. In total, the fund of funds manager will commit to between 10 and 15 underlying funds.

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