There are currently 15 venture capital-focused fund of funds vehicles seeking an aggregate $4.4bn from investors. Of these vehicles, 13 are managed by US-based managers.
HarbourVest Partners IX – Venture is the largest venture capital-focused fund of funds vehicle seeking capital, with a target size of $1bn – over 70% of its target has already been secured. The fund's capital will be invested globally with a primary focus on US venture capital funds.
The next largest venture capital-focused funds of funds are Performance Venture Capital III and Top Tier Venture Capital VI, both of which are targeting $400mn. Paul Capital’s Top Tier Investments VI will follow a similar strategy to its predecessor, investing in venture capital funds targeting opportunities in North America. The fund’s predecessor successfully raised $451mn from investors in 2012.
Performance Venture Capital III will typically commit to managers Performance Equity Management has previously established relationships with. The vehicle has the capability to make secondary market purchases of stakes in older venture capital funds. In terms of geographical focus, Performance Venture Capital III intends to execute its strategy on a global basis, targeting the most dynamic markets, with what the team views as the best long-term secular growth trends.