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Top Three Private Equity Fund of Funds Vehicles to Close in 2012 YTD

by Jessica Duong

  • 27 Sep 2012
  • PE

So far this year, 45 private equity fund of funds vehicles have reached a final close, garnering an aggregate $9.1bn. Preqin’s Funds in Market database shows that the largest of these in terms of final close size are: Axiom Asia Private Capital Fund III, Asia Alternative Capital Partners III, and Danske-Private Equity V.

The largest of the three, Axiom Asia III, closed in March 2012. Axiom Asia III was oversubscribed and closed above its $950mn target on its hard-cap of $1.15bn. The vehicle continues its predecessor fund’s strategy of investing in a portfolio of management buyout, venture capital, growth capital and other private equity funds in a range of Asian countries, including Greater China, India, Japan, Southeast Asia, Korea, and Australia. Though principally concentrating on primary investments, the fund’s manager has indicated that Axiom Asia III will also make purchases of fund interests on the secondary market, as well as co-investing in portfolio companies alongside underlying funds.

Asia Alternatives Capital Partners III was launched without any specific allocations to any industry sector or geographical regions, but the fund of funds’ investment strategy is likely to be primarily North Asia-focused, especially on fund managers based in China, Japan and Korea. As of August 2012, the fund was already one third committed, following its interim close in May earlier this year. The fund held its final close in August on $908mn, 13.5% above its original target of $800mn.

This summer also saw the closing of Danske-Private Equity V, another private equity fund of funds vehicle in excess of its original target. The fund, managed by the leading Danish firm, closed at the end of August above its $600mn target on its hard cap of $650mn. As with its predecessor funds, Dankse-Private Equity V will pursue investments in leading small and mid-market buyout funds in Europe and North America, but will also seek secondary and co-investment opportunities.

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