Three Largest Europe-Focused Private Equity Funds of Funds in Market – January 2013

by Jessica Duong

  • 24 Jan 2013
  • PE

Preqin's Funds in Market database shows that there are 30 funds of funds currently on the fundraising trail that are specifically targeting Europe-focused vehicle for investment. Collectively, these 30 funds are looking to raise a total €3.9bn. The average target fund size for these is €244mn, which is notably less than the €272mn mean target size of funds of funds in market that are North America-focused.

The largest of the 30 Europe-focused funds of funds currently raising is Euro Choice V, which is aiming for €720mn. The fifth fund of funds in the series raised by Akina has already held two interim closes – the second close one being on €200mn in October 2012. It began investing in 2012, with a particular focus on middle market buyout, growth capital and selective special situation funds. It intends to make both primary and secondary investments.

LGT Capital Partners are the managers of the next two largest funds of funds in market with a European focus. With a target size of €700mn, Crown Premium is the second largest, although it also targets American fund opportunities. The vehicle invests predominantly in the special situations and medium-sized buyout classes and also considers venture/growth capital funds. Similar to Euro Choice V, Crown Premium V seeks to participate on the primary market as well as in opportunistically pursuing secondary transactions. The third largest is Crown Europe Small Buyouts III, which is in the market for €500 million.

These figures somewhat evidence a lack of confidence and ambition of fund of funds managers, when compared to the funds on the road this time last year, when Harbourvest Partners was in market with HarbourVest International VI Partnership: a multi-continental-focused private equity fund of funds (including Europe, Asia and other regions outside of North America) that was targeting a massive $3bn.

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