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Private Equity Funds of Funds Holding Closes in March

by Joe Childs

  • 01 Apr 2011
  • PE

Conditions in the private equity fundraising market remain tough across the industry, but a number of fund of funds managers have concluded the capital raising process this month and are looking to deploy capital.

One France-based firm is looking to make 7-12 buyout and venture capital fund investments over the next year or two. Its newly-closed fund of funds has committed less than half of its capital to date and intends to establish a portfolio of 15-20 private equity funds. The vehicle focuses exclusively on Europe and will consider emerging managers and secondary transactions opportunistically.

After holding a first interim close for its latest vehicle at the end of 2009, one manager located in Germany is also seeking to add to the commitments it has already made. Closing this week just below target, the firm’s current fund of funds primarily targets Europe-focused buyout funds, but will also allocate around 10% of capital to US opportunities.

A Swiss manager of a recently-closed fund of funds is investing with a broad scope. Alongside venture and buyout funds, the firm is interested in distressed private equity opportunities and will allocate up to 20% of capital to Asia.

Final closes among North American managers have been less numerous compared to their European counterparts this month. Despite this, the amount of capital being targeted and secured by funds of funds based in the US is, in many cases, considerably larger than in Europe.

One firm headquartered in the US Midwest has held a first close after securing two-thirds of the capital it is targeting for its latest fund of funds, which is expected to invest in up to 15 private equity vehicles. Allocating all of the freshly-raised capital to Asia, another US manager is seeking to make direct co-investments, alongside primary and secondary commitments, after its latest fund of funds completed its fundraising period this month.

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