Firm’s fifth secondaries fund closes above €2.4bn target
The capital was sourced from over 230 different investors
Interest in secondaries continues to grow into 2024 as investors seek liquidity
(Update: This story's headline has been updated to reflect the correct currency of commitments.)
January 17, 2024 (Preqin News) – Paris-based fund of funds and secondaries manager Committed Advisors has closed its fifth secondaries fund with €2.6bn ($2.8bn) in commitments, exceeding the fund’s €2.4bn ($2.6bn) target.
Committed Advisors Secondary Fund V (CASF V) is over 65% larger than its 2020 predecessor, and twice the size of the average secondaries fund in 2023 ($1.4bn).
Capital was raised from 230 investors, including sovereign wealth funds, pension plans, endowments, foundations, financial institutions, high net-worth individuals (HNWIs), and family offices. The fund will invest in North America, Europe, and emerging markets. It will target private equity assets and secondaries.
CASF V has a core focus on assets in the buyout and equity growth stages of its development but the firm said it would consider distressed business opportunities.
Managing Partner Guillaume Valdant said the firm plans to deliver returns by concentrating on a diverse range of high-quality assets without using borrowed capital.
‘The ongoing succession of macro and geopolitical challenges, dampening private equity liquidity to the lowest level since the Global Financial Crisis, is creating a record pipeline of opportunities and an attractive pricing environment for secondaries,’ J. B. Stock, Managing Partner at Committed Advisors, said.
Many investors are optimistic about the outlook for the asset class amid expectations that opportunities will arise from LPs and GPs using secondary transactions as a way to generate liquidity from fund positions amid a difficult and slow exit market.
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