Partners Group raises $2.6b for global secondaries fund
Partners Group has closed its latest secondary fund at the hard cap of EUR2 billion ($2.6 billion) and expects to deploy a higher proportion of the corpus in Asia than for previous vehicles as the region’s private equity market matures. The vehicle was oversubscribed and closed before the expiration of its fundraising period.
Partners Group screened $70 billion in secondary opportunities in 2011, its highest ever amount, and similar deal flow is expected this year. The primary drivers are financial institutions divesting portfolios due to Dodd-Frank and Basel III requirements regarding balance sheet exposure to alternative assets and capital adequacy ratios, respectively.
Following the boom in primary private equity fundraising that ended with the global financial crisis in 2008, institutional investors are also seeking to rebalance their portfolios and therefore becoming more reliant on the secondaries market.
"Global private equity secondary markets continue to provide a wide range of attractive investment opportunities. We have already committed over 20% of the fund to a diversified cross-section of assets which are showing a strong performance overall," said Dr. Stephan Schäli, partner and head private equity.
He added that Partners Group has one of the largest dedicated secondary investment teams in Asia Pacific, with six offices across the region.
Earlier this year, Coller Capital reached a final close of $5.5 billion on its latest global secondaries fund. Coller International Partners VI is larger than its predecessor, which closed in 2007 at $4.8 billion, and above the initial fundraising target of $5 billion. The fund has already committed $800 million of its capital.
Lexington Partners closed its seventh global secondaries fund at $7 billion in 2011, making it the largest secondaries vehicle ever raised.
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