Document 273666

The 2008 Preqin Fund of Funds Review - Sample Pages
The 2008 Preqin Fund of Funds Review
Sample Pages
© 2008 Private Equity Intelligence Ltd
1
The 2008 Preqin Fund of Funds Review - Sample Pages
Contents:
1. Executive Summary
2. Data Sources
7
13
- Details of our online services
9.
Review of the Performance of Fund of Funds
-
How have fund of funds performed?
-
Detailed analysis for fund of funds vs. primary funds
-
Fund of funds benchmark performance
3. Review of Fund of Funds Fundraising Market
17
4. Listings of Funds Closed 2006 - November 2007
31
5. Listings of Fund of Funds Currently Raising
43
11. Profiles for 200 Leading Fund of Funds Managers
6. Fund Raising Outlook for Fund of Funds
51
12. Analysis of LPs in Fund of Funds
10. Fund of Funds as Investors
-
- Fund of funds coming to market in the next 12 months
7. Fund of Funds Terms Analysis
Detailed analysis of fund investments made by fund of funds
managers
-
Who is investing in fund of funds?
-
Key investor types and locations examined
13. Investors to Watch
-
- Key terms and conditions
99
335
345
Institutional investors to watch in 2008
67
14. Listings of 250 key LP investors in Fund of Funds
-
351
Including detailed investment plans and contact details
15. Index
© 2008 Private Equity Intelligence Ltd
89
57
- Typical management fees, terms, carry etc.
8. Fund Terms Listings
75
-
Fund of fund managers
-
LP investors
417
2
Executive Summary
Executive Summary
In the past few years the popularity of private equity
Fig. A: Number and Aggregate Value of Fund of Funds Raised 2003-2007 YTD
140
115
120
fund of funds vehicles has grown dramatically. As fig.
95
100
A shows, the number and aggregate value of fund of
funds
vehicles
achieving
a
final
close
rose
consistently up until 2006, when a total of 115 funds
80
73
64
60
achieved a final close, raising an aggregate $41bn in
commitments. Although at the time of writing there is
still one month's worth of further fund closes before
40
41
34
28
22
26
20
7
we have a definite fundraising total for 2007, it is
0
clear that the market is not going to achieve the
same high results as in 2006, with a total of $26bn
2003
2004
2005
No of Fund of Funds Raised
2006
2007 YTD
Agregate Commitments ($bn)
raised by 64 funds as of November 2007. However,
historically Q4, and in particular December, is a
the road seeking aggregate commitments of $46bn;
been predicting. It could be the case that certain
strong month for fund of funds fundraising, and it is
this has now grown to an unparalleled 165 vehicles
investors are waiting to see how events will develop
likely that with a number of funds about to reach a
seeking an aggregate $53bn in commitments.
before making new commitments, and as such fund
of funds managers may be finding it hard to achieve
final close, fundraising might reach as high as $30 Although investor appetite for fund of funds vehicles
the full commitments that they need to achieve a
remains high, it is possible that the smaller and less
final close on their latest vehicles, and are remaining
Although fundraising has slowed somewhat since
experienced institutions that traditionally make up a
in the market for longer than they might have
2006, the increase in number of new vehicles on the
large proportion of fund of funds investors have been
anticipated.
road has showed no signs of letting up. When The
shaken by recent developments in the global credit
2007 Fund of Funds Review was published in
markets, and the negative impact on returns within
Tthe number of fund of funds on the road which have
November 2006 there were a total of 113 vehicles on
private equity that some market commentators have
already held interim closes certainly suggests that
35bn by year end.
© 2008 Private Equity Intelligence Ltd
3
Executive Summary
this is the case. A total of 74 funds on the road have
they had gained experience of the market in order to
However, fund of funds are not only useful for
already held interim closes, with the aggregate
avoid the double layer of fees that are a feature of
smaller and less experienced investors, and such
target value of these funds currently standing at
fund of funds vehicles. New investors are therefore
vehicles have also proved to be valuable for larger
$28.5bn - a massive 54% of the total amount being
vital in order to ensure that the 'churn' of LPs through
investors with more sophisticated private equity
sought. With such a large number of funds having
this cycle from indirect to direct investments does not
programs. The majority of investors in fund of funds
held an interim close and therefore being relatively
leave
new
are relatively small in terms of total assets, with 32%
far on in their fundraising process, the coming
commitments to replace those of older investors that
of investors having total assets of less than $1bn.
months could see a recovery in fundraising.
have chosen the direct route.
However, a significant 9% of investors manage
fund
of
fund
managers
without
assets in excess of $50bn. Larger institutions can
However, with so many funds now on the road
competing with each other for the attention of
In section 12, 13 and 14 of this year's Review we
utilize focused fund of funds to gain access to
potential LPs, the level of competition has never
identify the key investors that will be providing capital
markets where they may lack the expertise to invest
been higher. Only those managers with the most
to the industry over the course of 2008. As might be
directly, such as fund type specific fund of funds, and
focused fundraising strategies, and those managers
expected, new and less experienced investors make
vehicles focusing on specific geographic markets.
able to identify the most promising potential new
up the majority of the profiled institutions. Fund of
They can also prove useful for LPs who usually
entrants to the private equity asset class will be
funds are the perfect investment solution for smaller
make very large commitments to gain access to
successful in closing their funds on target in 2008.
LPs as they allow these investors to gain a
funds which will only take smaller contributions from
balanced, diversified portfolio of private equity
their investors, such as smaller mid-market focused
There is no doubt that these LPs are out there; new
investments when they might lack the capital to
funds for example.
institutions are continually announcing their first
achieve such results themselves. Although a fund of
forays into private equity, with many of these new
funds vehicle involves an additional layer of fees,
The continued success of fund of funds managers as
investors choosing to gain exposure via the fund of
their use does enable investors with more limited
a solution for both smaller investors seeking a
funds route. Such investors are essential for the
resources to gain access to private equity without
diversified portfolio of investments, and for more
health of the fund of funds market, as they will
the need to recruit investment professionals and
experienced managers as an expert in fund
replace investors that have previously invested in
undertake
selection for specific fund types, is reliant upon their
private equity through fund of funds vehicles, but
themselves.
later took the decision to invest in funds directly once
© 2008 Private Equity Intelligence Ltd
costly
due
diligence
processes
ability to provide strong returns to their investors and
their ability to pick the best underlying funds.
4
Executive Summary
Analysis undertaken for this year's Review shows
Fig. B: Split of Underlying Fund Investments made by Fund of Funds Managers
sorted by Fund Quartile Ranking
that on both charges fund of fund managers are
managing to outperform the market benchmarks,
and are fulfilling their role as experts in due diligence
13%
and manager selection.
31%
Q1
Fig. B shows the split of underlying fund investments
25%
Q2
made by fund of funds managers into their
respective quartiles. This data is based on an
Q3
analysis of 2,512 underlying fund investments made
Q4
by 78 managers where Preqin holds information on
31%
at least 10 sample investments. As the graph shows,
fund
of
funds
managers
have
indeed
been
successful in identifying the better performing
vehicles, with a total of 62% of investments made
exceeding the median, and 31% of investments
are going to be increasingly competitive in the next
quartile manager has only a 9% probability of seeing
featuring in the top quartile. Conversely, only 13% of
twelve months. The ability of fund of fund managers
their follow on fund appearing in the top quartile, and
investments featured in the bottom quartile.
to demonstrate a good track record is therefore
only a 26% chance of their follow on fund even
going to be vital if firms are to be successful in their
beating the median fund.
Such success in manager selection shows that fund
fundraising efforts. Our analysis shows that track
managers are doing their job effectively, and with
record
future
The 2008 Fund of Funds Review shows which
new investors always looking to enter the asset
performance, and new LPs need to take careful note
managers have provided the best returns to
class, they will continue to see fund of funds as a
of
new
investors, and also identifies the best prospects for
viable and profitable method of gaining entry to the
investments. A first quartile fund of funds manager
managers seeking investors for their new vehicles.
asset class. However, as there are currently so many
has a 53% probability that their follow on fund will
Further sections identify which managers are on the
managers on the road seeking capital, conditions
also feature in the first quartile, while a bottom
road, who has recently closed a fund, and who is
© 2008 Private Equity Intelligence Ltd
past
is
an
excellent
performance
indicator
when
of
selecting
5
Executive Summary
likely to launch a new fundraising in the next twelve
months. Also included are detailed profiles for fund
of funds managers with individual investment plans
for latest vehicles. Further sections include a chapter
detailing typical terms and conditions for fund of
funds vehicles, with listings showing specific details
for actual funds closed in the past two years.
Analysis sections on all aspects of the industry detail
the latest trends and developments, making the
2008
Fund
of
Funds
Review
the
most
comprehensive source of information available
today. We hope you enjoy your copy, and as ever we
welcome any feedback and comments that you may
have.
© 2008 Private Equity Intelligence Ltd
6
Data Sources
Data Sources
Funds in Market: gives detailed information for over
LP Interviews: in addition to the information from
1,200 new funds currently on the road, plus 760
Investor Intelligence, our analysts interviewed over
The 2008 Fund of Funds Review has brought
funds that have closed during the past year, and
270 LPs during the research for the Review, and
together several of Private Equity Intelligence's data
over 500 follow-on funds likely to launch during the
their responses have given vital insights into their
sources to give a unique perspective on the
coming 12 months. Complete with details on the
investment intentions and hence the prospects for
worldwide market for private equity fund of funds.
industry and geographic focus of each fund, and
the fund of funds market in 2008.
These include our market-leading online databases
updated daily throughout the year, the database
plus significant additional research commissioned
provides its many users with an invaluable 'pulse' on
GP Interviews: 250 GPs provided us with direct
specially for the Review.
the global market.
feedback on their current and prospective fund
raising
activities
for
2008,
giving
the
most
Performance Analyst: gives detailed financial
Investor Intelligence: the premier source for LP
comprehensive analysis ever undertaken of the
information for over 10,000 private equity funds
information worldwide, this unique online service has
supply of the global fund of funds market. A
globally, including net-to-LP performance data for
detailed profiles for over 3,700 LPs globally,
significant number of GPs also provided us with
3,600 funds. Specifically, the database lists 1,010
including 286 fund of funds managers, complete with
access to their fund terms and conditions, for which
fund of funds, with performance data for 441.
information
we are very appreciative.
Performance Analyst is a unique resource that has
allocations
enabled us to analyse some of the key drivers of the
investments
current
The Review is based upon the latest information
global fund raising market. These include the
investment plans and funds available, and key
available as at the time of going to press in
aggregate net cash flow that LPs have experienced
contacts. GPs, placement agents and secondary
December 2007. Private Equity Intelligence will
from their private equity programs, and how these
specialists use it as a vital resource for their fund
continue to monitor the market during the course of
net cash flows have varied by fund type and
raising,
sourcing
the year, and to serve clients with our online
geography; the 'overhang' of uncalled commitments
activities. Being online and updated on a regular
information services, publications like the Review,
by type and location of fund; and the identities of the
basis, Investor Intelligence provides the up-to-date
and bespoke research projects. Please contact us if
firms that are likely to hit the fund raising market with
information that no printed directory can.
you have additional information requirements that
new follow-on funds during 2006.
© 2008 Private Equity Intelligence Ltd
on
to
assets
private
and
investor
under
equity,
GP
relations
management,
previous
relationships,
and
deal
fund
we can assist you with.
7
Listing of Funds Closed 2006 - November 2007
Fund Name / Firm Name
Target
Final
Close (mn) Close (mn)
Close
Date
Placement
Agent
Strategy
Fund Type
Preference
747 Stuyvesant
Countries: US
(100%)
Primary (96%)
Buyout (50%) and
and Secondary
Venture (50%)
(4%)
Countries: Japan
(70%) and Other
(30%)
Daido Life Insurance, Mitsubishi Corporation
Pension Fund and Mizuho Corporate Bank
Jan-07 Not Used
Primary (80%) Buyout (70%) and
and Secondary General Special Sit.
(20%)
(30%)
Regions: Europe
(100%)
South Yorkshire Pensions Authority
90 EUR
Dec-06 Not Used
Primary (70%)
and Secondary Venture (100%)
(30%)
Regions: Europe
(100%)
South Yorkshire Pensions Authority
150 USD
150 USD
Jun-06 Not Used
Primary (100%) Venture (100%)
Countries: US
(100%)
California Healthcare Foundation
100 USD
100 USD
Apr-06 Not Used
Buyout (25%) and
Venture (75%)
Dec-06
Buyout (60%), General
Special Sit. (10%),
Regions: West
Mezzanine (10%) and Europe
Venture (20%)
London Borough of Hillingdon Pension Fund
Jun-07
Buyout (60%), General
Special Sit. (10%),
Regions: West
Mezzanine (10%) and Europe, Global
Venture (20%)
Baltimore Fire & Police Employees' Retirement
System, New Zealand Superannuation Fund,
Orange County Employees' Retirement System,
Oxfordshire County Council Pension Fund and
Teachers' Retirement Allowances Fund
Dec-06 Not Used
Other (20%), Buyout
(40%) and Venture
(40%)
British Columbia Investment Management
Corporation, PNM Resources Pension Fund
and UBS Alternative Portfolio
Jan-06 Not Used
200 USD
165 USD
Jul-07
250 EUR
307 EUR
100 EUR
A.I. Capital Japan II
Alternative Investment Capital
Mitsubishi
Corporation
Capital
Access Capital Partners
Access Capital Fund III - Technology
Europe
Access Capital Partners
Accolade Partners II
Accolade Partners
Actis Umbrella Fund
Actis
Adams Street Non-US Partnership
2006
432 USD
Adams Street Partners
Adams Street Non-US Partnership
2007
695 USD
Adams Street Partners
Adams Street US Partnership 2006
Adams Street Partners
Advanced Capital Private Equity II
100 USD
321 USD
Dec-06
217 USD
Oct-07
Advanced Capital Private Equity Partners
Adveq Asia I C.V.
Adveq Group
© 2008 Private Equity Intelligence Ltd
Sample LPs
Primary (100%) Buyout (100%)
10 USD
747 Capital
Access Capital Fund III - Mid Market
Europe
Geographic
Focus
Buyout (60%) and
Primary (100%)
Venture (40%)
Any (25%), Buyout
(50%) and Venture
(25%)
Regions: Asia,
CDC Group and SVG Advisers
Africa, Pacific Rim
Regions: US,
North America
Regions: Europe
(30%), North
America (65%)
and Other (5%)
Regions: Asia
(100%)
UBS Alternative Portfolio
8
Listing of Funds Currently Raising
Fund Name / Firm Name
747 Stuyvesant II
747 Capital
Target
Closings to Date / Expected Closings (mn)
Size (mn)
100 USD
First Close: 25 USD (Jun-2007), Final Close
(Expected): (Jun-2008)
Placement Agent
Strategy
Not Used
Direct (20-20%)
Buyout (100%)
and Primary (80%)
Abbott Capital Private Equity Fund VI
Fund Type Preference
Buyout (33%), General
Special Sit. (33%) and
Venture (33%)
Abbott Capital Management
Adams Street Non-US Partnership 2008
Adams Street US Partnership 2007
Any (20%), Buyout (40%)
and Venture (40%)
Adams Street Partners
Adams Street US Partnership 2008
Advanced Capital Private Equity III
Primary and
Secondary
100 EUR First Close (Expected): (Nov-2007)
Adveq Opportunity II
Adveq Group
AGF Private Equity
Altius Associates Fund of Funds
Altius Associates
AMA Private Equity Fund of Funds
GenSpring Family Offices
First Close: 100 EUR (May-2007), Second
350 EUR Close (Expected): (Oct-2007), Final Close
(Expected): (Jan-2008)
Used but not
specified
200 USD
Not Used
American Securities Capital China Fund
American Securities Capital Partners
150 EUR First Close: 77 EUR (Oct-2007)
© 2008 Private Equity Intelligence Ltd
Not Used
Regions: Europe (30%),
North America (65%) and
Other (5%)
Any (100%)
Regions: North America
(100%)
Buyout (100%)
Regions: Europe (100%)
Regions: North America,
Europe
Primary (80100%) and
Secondary (020%)
Buyout (60-70%)
Regions: North America
Buyout (100%)
Regions: West Europe
(100%)
Regions: Greater China
(100%)
50 USD
First Close: 30 USD (Nov-2007)
600 USD
First Close: 150 USD (Sep-2007), Final Close
(Expected): (Mar-2008)
Auda Capital V
Auda Advisor Associates
Regions: North America
(100%)
Buyout (60%) and Venture
(40%)
200 USD
Asia Select Capital Growth Fund
Monaco Capital Partners
Direct, Primary
(60-100%) and
Secondary
150 USD First Close: 48 USD (Oct-2007)
Amanda IV West
Amanda Capital
Regions: Global (25%)
and North America (75%)
Regions: North America
Adams Street Partners
AGF Private Equity Holding Europe V
Regions: North America
(100%)
Regions: Europe, Global
Adams Street Partners
Advanced Capital Private Equity Partners
Geographic Focus
Used but not
specified
Direct, Primary
(100%) and
Secondary
Buyout and Venture
Regions: Greater China
(50%), Countries: India
(50%)
Buyout (70-80%),
Regions: Europe (50%),
Distressed Debt, General
Countries: US (50%)
Special Sit. and Late Stage
9
Review of the Performance of Fund of Funds
sourced by independent sources but some data
Fig. 38: Fund of Funds Synthetic IRR
come directly from them e.g. marketing materials
40
highlighting relationships with established fund
30
etc. The sourcing of the data may create a bias in
this information towards the upper quartiles but we
do not believe that this has a great impact.
Synthetic IRRs
When comparing the performace of different fund of
Synthetic Pooled IRR
managers, sample investments from their website,
20
10
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
-10
-20
funds it is vital to take into consideration the strategy
being employed by the manager in question in terms
-30
25% Buyout - 75% Venture
100% Venture
of fund types. Most managers invest the majority of
75% Buyout - 25% Venture
100% Buyout
50% Buyout - 50% Venture
their fund of funds vehicles in buyout and venture
funds and usually also have a small allocation to
underlying fund types. Ideally each fund of funds
fund of funds generally commit to funds over a range
other fund types. Certain managers choose to
should
of vintages, and assumes that each fund of funds
concentrate their investments in only one fund type,
benchmark reflecting its investment strategy.
be
examined
against
a
tailor
made
commits to funds over a three year period, with 50%
of commitments made in the first year, 30% in the
such as venture, early stage or distressed debt.
Whatever the strategy followed, each fund of funds
Using extensive cash flow data for 1,500 private
second year and 20% in the third year. The graph
has a specific weighting between venture, buyout
equity funds, Preqin has created a 'synthetic' fund of
therefore illustrates how funds with different mixes of
and other types of funds. Venture, buyout and other
funds benchmark that adapts to any allocation mix
underlying fund types should perform if they
type of private equity funds have generated different
between venture, buyout and other funds. Fig. 38
achieved median performance for its specific mix of
average returns, and therefore fund of funds
shows the net pooled IRRs generated by the model
fund types. For example, a fund of funds with a
performance should be measured by taking into
for different allocations between the different type of
vintage 2000 following an allocation of 75% to
account the fund's specific allocation to different
funds. The model takes into account the fact that
buyouts and 25% to venture should have
© 2008 Private Equity Intelligence Ltd
10
Fund of Funds as Investors
Fig. 42: Fund of Funds Managers - Regional Breakdown
Fig. 43: Attitudes of Fund of Funds Managers to First-Time Funds
9%
11%
15%
North America
Yes
52%
39%
Europe
60%
14%
No
Consider
Asia and Rest
of World
Spin offs only
First-Time Funds
A considerable 39% of fund of funds managers are
smaller than their counterparts in North America and
to be found in Europe. These managers supply
Europe; aggregate allocations from this region
approximately a quarter of the aggregate committed
equate to only a 1% share of the total capital
Fund of funds are often seen as an invaluable
capital to private equity of this investor group. With
allocated to private equity by this investor group as a
source of capital to fund managers raising their first
€40
management,
whole. Managers are distributed around the globe,
fund. As fig. 43 shows, 60% of fund of funds
Netherlands-based AlpInvest is the third largest
from Alternative Investment Capital in Japan, to
managers will definitely provide backing to a first-
private equity fund of funds manager in the world.
Grupo Guayacán in Puerto Rico. Macquarie Funds
time fund. Only 14% will not invest in an emerging
AlpInvest manages the private equity assets of the
Management Group, with over A$50 billion in assets
manager, although an additional 11% will not make a
two largest Dutch public pension funds, ABP and
under management, is the largest private equity fund
commitment to a first-time fund unless the team has
Pensioenfonds PGGM.
of funds manager to be found outside North America
spun out of an existing entity. Though on the surface
and Europe. The Australian manager currently has
banks and corporate investors look to be better
billion
in
assets
under
The remaining 9% of fund of funds managers are to
A$7 billion committed to private equity, 80% of which
be found in Asia and the Rest of World region.
is through primary commitments to funds and 20%
However, these managers are generally much
acquired through secondary transactions.
© 2008 Private Equity Intelligence Ltd
11
Profiles for 200 Leading Fund of Funds Managers
Access Capital Partners
Raised (mn): 1,176 EUR
Tel: +33 (0)1 56 43 61 00
www.access-capital-partners.com
121, Ave des Champs-Elysées, Paris 75008, France
Established: 1999
Fax: +33 (0)1 56 43 61 01
[email protected]
Access Capital Partners (Access) is an independent fund of funds manager specialising in
investment in European mid-market buyout funds and technology funds. The firm offers distinct
European mid-market buyout fund of funds and technology fund of funds as well as advisory Philippe Poggioli
services and can design, implement and manage tailor-made fund investment programmes. Dominique Peninon
Access Capital Partners has built relationships with European and North American clients such
Agnès Nahum
as pension funds, insurance companies, banks and family offices.
Cecile Croissant
Access Capital Fund II - Mid Market Europe
Fund Types: Buyout (70%) and General Special Sit. (30%)
Regions: Europe (100%)
Strategies: Primary (80%) and Secondary (20%)
Invest First-Time Funds: Spin-Offs
Fund Investments (Total): 15 to 20
Access Capital Fund II - Technology Europe
Fund Types: Venture (100%)
Regions: Europe (100%)
Strategies: Primary (70%) and Secondary (30%)
Invest First-Time Funds: Spin-Offs
Access Capital Fund III - Mid Market Europe
Fund Types: Buyout (70%) and General Special Sit. (30%)
Regions: Europe (100%)
Strategies: Primary (80%) and Secondary (20%)
Invest First-Time Funds: Spin-Offs
Fund Investments (Total): 15 to 20
Access Capital Fund III - Technology Europe
Fund Types: Venture (100%)
Regions: Europe (100%)
Strategies: Primary (70%) and Secondary (30%)
Invest First-Time Funds: Spin-Offs
Fund Investments (Total): 15 to 20
© 2008 Private Equity Intelligence Ltd
Contacts
Managing Partner
[email protected]
Managing Partner
[email protected]
Managing Partner
[email protected]
IR & Communication Director
[email protected]
Closed: 2001
Access Capital Fund II (ACF II) is divided into two separate fund of funds vehicles, Mid Market Europe and
Technology. ACF II Mid Market Europe will primarily invest in mid-market buyout funds although it does have
an allocation to special situation and sectorial funds. All funds ACF II Mid Market Europe will commit to will
focus exclusively on investment in Europe. Up to 20% of capital could potentially be used in secondary
transactions, but such investments will be made on an opportunistic basis. Access Capital Partners will not
generally invest in first time funds, unless the team managing the fund has an impressive prior performance
track record as a combined entity.
Closed: 2001
Access Capital Fund II (ACF II) is divided into two separate fund of funds vehicles, Technology Europe and Mid
Market Europe. ACF II Technology Europe will focus 50% of its capital on investment in European early-stage
funds and 50% in European late-stage funds. Up to 30% of capital could potentially be used in secondary
transactions, but such investments will be made on an opportunistic basis. Access Capital Partners will not
generally invest in first time funds, unless the team managing the fund has an impressive prior performance
track record as a combined entity.
Closed: 2005
Access Capital Fund III (ACF III) is divided into two separate fund of funds vehicles, Mid Market Europe and
Technology Europe. ACF III Mid Market Europe will primarily invest in mid-market buyout funds although it
does have an allocation to special situation and sectorial funds. All funds ACF III Mid Market Europe will focus
exclusively on investment in Europe. Up to 20% of capital could potentially be used in secondary transactions,
but such investments will be made on an opportunistic basis. The fund of funds will typically commit
approximately EUR 10 - 15 million to any fund and will invest in 15 to 20 funds in total. These funds will provide
ACF III Mid Market Europe's investors with exposure to 300 to 400 European privately-held companies across
6 to 8 European countries. Access Capital Partners will not generally invest in first-time funds, unless the team
managing the fund has an impressive prior performance track record as a combined entity.
Closed: 2006
Access Capital Fund III (ACF III) is divided into two separate fund of funds vehicles, Technology Europe and
Mid Market Europe. ACF III Technology Europe will focus investing up to 50% of its capital on investments in
European early-stage funds and 50% in European late-stage funds. ACF III may invest up to 30% of capital
could potentially be used in secondary transactions, such investments are however made on an opportunistic
basis. ACF III will typically commit EUR 10 million to any fund and will invest in 15 to 20 funds in total. These
funds will provide ACF III Technology Europe's investors with exposure to 300 to 400 European privately held
companies across 6 to 8 European countries. Access Capital Partners will not generally invest in first time
funds unless the management team have an impressive track record and history within the industry.
12
Profiles for 200 Leading Fund of Funds Managers
Sample Investments
Fund
Vintage
Type
Location
Size (mn)
Vintage
Type
Location
Size (mn)
ISIS Equity Partners IV
2007
Buyout
UK
238 GBP
Fund
Perfectis II
2005
Buyout
France
122 EUR
Litorina Kapital Fund III
2007
Buyout
Sweden
150 EUR
Sovereign Capital II
2005
Buyout
UK
275 GBP
2005
Venture
Germany
150 EUR
Mercapital Spanish Private Equity
Fund III
2007
Buyout
Spain
550 EUR
Wellington Partners III Technology
Fund
Reiten & Co Capital Partners VII
2007
Buyout
Norway
256 EUR
Close Brothers PE Fund VII
2004
Buyout
UK
359 GBP
TLcom II
2007
Early Stage
UK
200 EUR **
MCH Iberian Fund II
2004
Balanced
Spain
160 EUR
ViewPoint Growth II
2007
Buyout
Germany
140 EUR **
Segulah III
2004
Buyout
Sweden
21 Centrale Partners III
2006
Buyout
France
330 EUR
Gresham III Fund
2003
Buyout
UK
235 GBP
Amadeus and Angels Seed Fund
2006
Early Stage
UK
10 GBP
Innovacom 5
2003
Early Stage
France
120 EUR
Chequers Capital XV
2006
Buyout
France
600 EUR
Northzone IV
2003
Early Stage
Norway
78 EUR
Gresham IV Fund
2006
Buyout
UK
340 GBP
Chequers Capital
2002
Buyout
France
300 EUR
Northzone V
2006
Early Stage
Norway
175 EUR
European Acquisition Capital Fund III
2002
Buyout
UK
225 GBP
STAR II
2006
Buyout
UK
1,000 USD
Langholm Capital Partners
2002
Buyout
UK
242 EUR
Advent Private Equity Fund IV
2005
Venture
UK
128 GBP
Nmas 1
2002
Buyout
Spain
175 EUR
Amadeus III
2005
Venture
UK
162 GBP
PolyTechnos Venture Fund II
2002
Early Stage
Germany
130 EUR
Banexi Ventures 4
2005
Early Stage
France
130 EUR
ACT 2001 Venture Capital Fund
2001
Venture
Ireland
170 EUR
Carlyle Europe Technology Fund
2005
Buyout
US
222 EUR
Avlar BioVentures Fund II
2001
Early Stage
UK
62 GBP
Gilde Buyout Fund III
2005
Buyout
Netherlands
600 EUR
Close Brothers PE Fund VI
2001
Buyout
UK
202 GBP
Innkap IV
2005
Venture
Sweden
113 EUR
Gilde Buyout Fund II
2001
Buyout
Netherlands
530 EUR
Vintage
Status
Size (mn)
2,350 SEK
Funds Managed
Fund
Called %
Benchmark IRR
Distributed
(%) DPI
Rem. Value (%)
RVPI
Multiple (X)
FOFs
Synthetic
Date
Reported
Net IRR (%)
Access Capital Fund II - MMBO
2001
Closed
153 EUR
81
50
104
1.54
19.5
12.33
26.41
30-Jun-07
Access Capital Fund II - Technology
2001
Closed
123 EUR
76
16
94
1.1
4.99
12.33
0.67
30-Jun-07
2005
Closed
307 EUR
22.5
15
128
1.43
2006
Closed
90 EUR
20
Access Capital Fund III - Mid Market
Europe
Access Capital Fund III - Technology
Europe
© 2008 Private Equity Intelligence Ltd
101
30-Jun-07
30-Jun-07
13
Listings of 250 Key LP Investors in Fund of Funds
Bryn Mawr College Endowment
Endowment Plan
Tel: +1 610 526 5000
www.brynmawr.edu
101 North Merion Ave., Bryn Mawr, PA 19010-2899, US
Bryn Mawr College Endowment is a relatively small investor in private equity and has a target allocation of 5% to the Assets Mgd (mn):
asset class. Fund of funds allows the endowment gain exposure to funds that it would not usually have access to.
Bryn Mawr College Endowment has a relatively small investment team that benefits from the assistance and
extensive knowledge of an experienced fund of funds manager. It has previously invested with Comonfund Capital, a
fund of funds manager that was able to offer diversification by geography, strategy and fund manager style. In Q4
2007, it was expected that Bryn Mawr College Endowment would continue to invest in fund of funds in order to John Griffith
achieve its target allocation to private equity and expand its investment portfolio.
Tijana Stefanovic
Jerry Berenson
BUSS(Q)
Superannuation Scheme
CFO
Business Analyst
Private Pension Fund
www.bussq.com.au
[email protected]
1,200 USD
P.E. Allocation (mn): 46 USD
Niche Emerging Private Equity Manager Fund (2006), ING
Private Capital Fund III (2005)
Contacts
David O'Sullivan
CEO
[email protected]
Dallas Ezzy
Member Services
[email protected]
Tel: +49 (0)30 896 01 591
Kurfürstendamm 111-113, Berlin 10711, Germany
www.bvv-vers.de
[email protected]
In April 2006, BVV set aside EUR 170 million for an initial investment in private equity and in March 2007, made two Assets Mgd (mn):
private equity fund of funds commitments through two different fund of funds managers. BVV is attracted to fund of
funds because this investment route improves the diversification in its investment portfolio and is less labour
intensive compared to investing directly into a private equity fund. In 2008, BVV is expected to continue investing in
private equity through fund of funds as it is still relatively inexperienced in the asset class, and yet to reach its target
Ralph Dieckvoff
allocation of 1.5% to the asset class.
Rainer Jakubowski
© 2008 Private Equity Intelligence Ltd
[email protected]
Chief
Administrative
[email protected]
Officer
Fax: +61 (0)7 3217 5212
BUSS(Q) invests a significant proportion of its private equity allocation in fund of funds vehicles. Fund of funds Assets Mgd (mn):
managers it has invested with include ING Investment Management (Australia), Sovereign Investment Research,
Quay Partners, Wilshire Private Markets Group and Rho Fund Investors. Through its partnerships with these Sample Investments:
managers, it has exposure to a variety of different strategies across Australasia, Western Europe and North America.
It invests in fund of funds in order to get access to global funds.
P.E. Allocation (mn): 14 USD
Contacts
Tel: +61 (0)7 3369 1111
BUSS(Q) Fund Office, PO Box 902, Spring Hill, Queensland 4004, Australia
BVV
751 USD
18,600 EUR
P.E. Allocation (mn):
Contacts
Head of Private Equity r.d[email protected]
CEO
Portfolio
[email protected]
Management
14
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