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Secondaries Fundraising Overview - 2011

by Antonia Lee

  • 12 Jan 2012
  • PE
  • RE

Fundraising conditions have been challenging over the past year, and this has been no exception for secondary fund of funds managers. Over the course of 2011, 18 private equity and private real estate focused secondaries funds held a final close after raising an aggregate $10.3bn, a decline from the 20 funds that raised $11.5bn in 2010 and the 21 secondaries vehicles that secured $22.5bn in 2009.

North America-focused secondaries funds raised the most amount of capital in 2011, with eight such vehicles garnering just under $9bn. This is primarily due to the closure of Lexington Capital Partners VII, which closed in June 2011 after raising $7bn from investors, making it the largest secondaries vehicle ever raised. Eight funds with a primary focus on Europe raised $1.2bn and just two Asia and Rest of World-focused secondaries funds closed, collecting a total of $80 million.

There are currently 27 secondaries and real estate secondaries funds on the road targeting an aggregate $18.4bn. Although markets remain volatile, there are number of large secondaries vehicles currently seeking capital from investors. The largest secondaries fund currently in market is Coller International VI. This vehicle, which has a target size of $5bn, is likely to follow a similar strategy to its predecessors by purchasing portfolios of private equity assets, including interests in established private equity funds and privately held companies, on a global scale.

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