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Private Equity Secondaries Funds in Market - March 2013

by Patrick Adefuye

  • 14 Mar 2013
  • PE

Preqin’s Secondary Market Monitor database is currently tracking 32 private equity secondaries funds in market which are seeking to raise an aggregate $23bn from investors. Nineteen of these vehicles are known to have already held an interim close and have so far raised $9bn towards their final target sizes. Nine of the vehicles are seeking $1bn or more and account for 73% of the total capital being sought by secondaries vehicles currently on the road.

2012 was a successful year for private equity secondaries fundraising, with 14 funds closing in the year having raised an aggregate $20bn, which is only surpassed by the peak of $22bn raised in 2009. 2013 could be another positive year for secondaries fundraising, with several large vehicles currently on the road. The largest two private equity secondary vehicles in market are Dover Street VIII and Vintage Fund VI, managed by HarbourVest Partners and Goldman Sachs Private Equity Group respectively. Both vehicles set an initial target size of $3bn.

Dover Street VIII has already exceeded its fundraising target having raised $3.1bn so far. The vehicle will purchase stakes in venture capital and buyout funds, as well as portfolios of operating companies. It will also take part in synthetic secondaries, in which it will aid in management-team spin-offs by giving those groups the capital needed to buy out their parents’ fund interests. It is expected that between 40-50% of the fund's total value will be invested in direct secondaries. Vintage Fund VI has also already raised significant capital and held a fourth close on $2.96bn in November 2012. The vehicle will seek investment opportunities in all private equity strategies and geographies.

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