There are 568 venture capital vehicles currently in market, with an aggregate target size of $61bn. The fund type is attractive to a large number of investors, with 77% of the 283 private equity fund of funds managers currently tracked by Preqin’s Investor Intelligence online service specifying some interest in venture capital fund commitments.
Of these fund of funds managers, over half (51%) are based in North America, 31% are based in Europe, and the remaining 18% are based in Asia and other regions. Collectively, these investors represent an aggregate of $849bn in private equity assets under management, making them a significant source of capital for venture capital funds.
The largest private equity fund of funds manager with a preference for venture capital funds is AlpInvest Partners, with just over $48bn in private equity assets under management. The Netherlands-based firm recently made a commitment to Abingworth Bioventures VI, a US and Europe-focused fund which makes venture capital investments across the healthcare sector. AlpInvest Partners accesses the market through managed funds of funds, secondary market investments, and co-investment opportunities, and will commit to a pure first-time fund.
Goldman Sachs AIMS Private Equity is the second largest fund of funds manager interested in venture capital funds, with $41bn in private equity assets under management. The US-based firm has previously made a commitment to ff Rose Venture Capital Fund, a global early stage fund which invests across the technology sector. Goldman Sachs AIMS Private Equity is an active co-investor, and will commit to first-time funds raised by spin-off management teams.
Finally, Ardian is the third largest private equity fund of funds manager with a preference for venture capital vehicles, with $36bn in private equity assets under management. The French firm is a global investor and gains exposure to private equity through primary, secondary, and co-investment opportunities. It invests in a wide range of fund types through its funds of funds, and will consider committing to a first-time fund.