Adveq collects €462m for latest fund of funds

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The firm did not set a formal upper limit for the fund, Tim Creed, managing director and head of Adveq’s European investment practice, told FN’s sister publication Private Equity News.

“We made sure we stuck to the number that we felt was right,” he added.

Investors in the fund included pension funds, insurance companies and endowments from Switzerland, Germany, the UK and the US, Creed said. Almost all investors that were in Adveq’s previous fund of funds – a €320 million vehicle raised in 2012 – re-invested and with Adveq and increased the size of their commitments compared to previous investments. The fund also attracted a number of new investors, he added.

The firm’s investment team committed 1% to the fund, also known as the “GP (General Partner) commitment”, according to Creed.

Adveq will invest capital from its sixth fund of fund in primary, secondary and co-investments in the European small buyout space. It will invest its capital with both first-time funds and established managers, writing equity tickets of between €20 million and €30 million, he said. On the co-investment side, it can do deals of between €1 million and €20 million.

The fund, which held a first close of undisclosed size earlier in the year, is already about 40% invested, Creed said.

The final close comes as fundraising by fund of funds managers has taken a hit in the last year. In the year up to December 9, fund of funds globally raised a combined $ 15.3 billion across 58 funds, a significant drop from the $ 20.5 billion that was collected by 85 funds in 2015.

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