Preqin’s Funds in Market shows that there are currently 158 private equity fund of funds vehicles on the road seeking investor commitments. Collectively, these vehicles are targeting $41bn and have so far secured $10bn in LP commitments. Over a quarter (27%) of funds of funds in market have already reached their first close, and an additional 20% have held at least two interim closes.
In terms of geographical focus, over half (52%) of these private equity funds of funds have a core focus on US-focused vehicles. A further 18% specifically target Asian funds and 17% are primarily focused on Europe.
The top three private equity funds of funds currently in market with regard to target size are: Guochuang Kaiyan Fund of Funds, HarbourVest Partners IX – Buyout and Abbott Capital Private Equity Fund VII. These three vehicles together represent 11% of all capital being targeted by private equity funds of funds that are currently in market.
The largest of these is Guochuang Kaiyan Fund of Funds, which is aiming to raise CNY 10bn (over $1.5bn). Sixteen months after its launch in December 2010, the fund had garnered CNY 9bn and is expected to have a final close this year. The fund is part of a joint venture between China Development Bank and Oriza Holdings that has a main objective to provide capital for domestic private equity and venture capital firms. Guochuang Kaiyan Fund of Funds will focus specifically on buyout opportunities.
HarbourVest Partners IX – Buyout is part of a series by HarbourVest Partners that also has a Venture Capital and Credit Opportunities strand. HarbourVest Partners IX – Buyout is targeting $1.5bn and focuses on US-based vehicles. Abbott Capital Private Equity Fund VII is aiming for $1.3bn and will divide its capital equally between buyout, venture capital and special situations funds.