Capital Dynamics raises over $550m for secondaries

Zug, Switzerland

The fund, which had a $ 350 million target, has closed at $ 564 million, having attracted capital from 70 investors across Europe, the US, Asia and the Middle East, according to a statement from the firm. Investors in the fund include pension plans, insurance companies, endowments and family offices.

The fund will take second-hand stakes in single funds as well as portfolios and complex transactions, Capital Dynamics said.

There are currently a raft of firms attempting to collect capital for secondaries, with 41 funds in the market – the highest number in five years – aiming to raise a combined $ 22.2 billion, according to Preqin’s Secondary Market Update Q2.

The largest secondaries fund currently in the market is Strategic Partners fund VII, which is looking to raise $ 5.5 billion, according to Preqin. Intermediate Capital Group is trying to raise $ 1 billion, while Hamilton Lane is attempting to collect $ 1.25 billion for its latest secondaries fund.

Secondaries firms already have a lot of unspent capital, which is also known as dry powder. In January there was $ 80 billion of cash in funds available globally for secondaries, according to secondaries advisory firm Greenhill Cogent. Investments in the secondaries market are expected to reach between $ 35 billion and $ 45 billion globally in 2016, Greenhill Cogent said at the time.

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