Venture Capital-Focused Fund of Funds Vehicles in Market - June 2012

by Patrick Adefuye

  • 07 Jun 2012
  • PE

At present there are 13 private equity fund of funds vehicles on the road that will invest all of their capital in venture funds. In aggregate, these funds are seeking $3.9bn, with an average target value of $299mn. Of these, 10 vehicles include a specific allocation for North America-focused venture capital vehicles; four include an allocation to Europe-focused vehicles and three include an allocation to Asia.

The largest venture-focused vehicle currently seeking capital is HarbourVest Partners IX-Venture, which has a target size of $1bn, managed by US-based HarbourVest Partners. The fund's capital will be invested globally, with a primary focus on US venture funds. As of November 2011, the fund had garnered $703mn from investors.

The next largest is China-focused fund of funds vehicle GC Oriza Fund of Funds, managed by China-based Suzhou Ventures Group. The fund, which launched in July 2010, has a target of CNY 5bn and has held a first close – on CNY 3bn- in late 2010. GC Oriza Fund of Funds will only invest in venture capital funds registered in China and intends to invest in 20 to 30 funds during its lifetime, committing between CNY 100mn to CNY 300mn to each underlying vehicle.

Elsewhere, Greenspring Global Partners V has a target size of $375mn. The vehicle aims to provide access to top-tier venture capital fund manager with broad geographic exposure to the US, Asia and Europe. It will invest in the IT, communications, healthcare, life sciences and clean energy sectors.

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