Preqin’s Investor Intelligence database tracks 18 private equity fund of funds managers that are headquartered in the UK. The vast majority (78%) of these firms are based in London, with the remaining proportion established in other major British cities including Edinburgh, Oxford and Sheffield. Collectively, the 18 companies have an aggregate $90.2bn in assets under management, and have a total allocation of $75.8bn to the private equity asset class. The largest of these fund of funds managers in terms of assets under management are Pantheon and Altius Associates.
Pantheon currently manages $23.9bn in regional primary investments, global secondary and infrastructure investments, and customized separate account programmes for over 400 clients. Pantheon have been investing in private equity funds since 1983 and cover a diverse range of strategies, industries and countries in order to minimize risk. Their fund of funds activity is global, as they seek investment opportunities across the US, and European and Asian continents, and operate offices in London, Hong Kong and San Francisco.
Altius Associates is a London-based fund of funds firm, with additional offices in Richmond, VA and Singapore. It invests in private equity through its fund of funds vehicles and separate accounts, covering buyout, venture capital, growth equity, distressed, secondaries, mezzanine, and special situations opportunities. Altius currently manages and advises approximately $21bn of investments and commitments for investors based all around the world. The firm will consider opportunities with first-time fund managers, but has a preference for teams with strong track records.
Preqin’s database shows that one third of UK-based private equity fund of fund managers will invest in first-time funds and a further 28% will only be willing to partner specifically with spin-off teams. Just 11% indicate that they would consider investing in a first-time fund and 17% will not invest in first-time vehicles.