Secondaries Funds in Market - April 2012

by Antonia Lee

  • 05 Apr 2012
  • PE
  • RE

There are currently 32 private equity and real estate secondaries funds in market, seeking to raise an aggregate $22.4bn to invest in private equity and real estate secondary market opportunities. Just under half (15) are being raised by managers located in the US, accounting for 42% of the total targeted capital. Fifty-three percent of secondaries vehicles on the road are predominantly North America-focused, 28% are primarily interested in European opportunities and the remaining 9% will mainly be seeking secondary market opportunities in Asia and Rest of World.

Of the 32 secondaries vehicles on the road 15 have already held interim closes, raising an aggregate $2.7bn towards their total targets. The average amount of capital being sought by secondary fund of funds managers has declined, currently standing at $799mn compared with $1.3bn in 2009 when secondaries fundraising reached record levels.

Despite the difficulties in fundraising caused by the financial crisis, there are a number of large secondaries vehicles seeking capital. The largest secondaries fund currently in the market is Coller International Partners VI. UK-based secondary fund of funds manager, Coller Capital, is targeting $5bn from investors for its sixth dedicated private equity secondaries fund.  Another notable secondaries vehicle currently seeking capital is AXA Secondary Fund V. The French private equity fund of funds manager is seeking $3.5bn from investors looking to gain exposure to buyout, growth equity and venture capital funds via the secondary market. The fund will also purchase direct interests in portfolios of operating companies.

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