Abbott Rakes In FOF V –


Sponsor: Abbott Capital Management

Fund: Abbott Capital Private Equity Fund V

Raised: $850 million

Target: $750 million

Legal counsel: Proskauer Rose

Abbott Capital Management’s fifth fund has raised over $850 million, beating a target of $750 million. The fund was fully allocated within a month of Abbott circulating its PPM. Its last fund, which raised more than $730 million, closed in 2001.

The fundraising went more quickly than last time because the firm’s existing investors immediately re-upped, leaving little room for new investors who hadn’t shown interest prior to the beginning of fundraising, said Abbott Managing Director Charlie van Horne. “Many investors had made up their minds they wanted to commit before the fund was officially launched,” he said.

One change for this fund from the last will be a greater focus on investments outside the U.S. “The growing maturity of the buyout market in Europe causes us to focus on that more than we did when we started investing 10 years ago,” said Managing Director Thaddeus Gray. The fund will invest between 20% and 25% in European private equity funds.

Abbott’s fifth fund will stick with the same strategy it has had for the last two decades, investing in a balance of early stage, late stage, buyout and special situations funds. Abbott will invest in between 25 and 30 buyout firms. Overall, the 20-year-old firm manages about $5.5 billion from about 100 institutional investors and has about 70 active partnerships with general partners.

Among other big funds of funds that closed recently is the Adams Street Partnership 2006 Fund Program, which closed on $1.4 billion in the fourth quarter of 2005. CSFB, meanwhile, closed on its third fund of funds with $2.425 billion in the second quarter of 2005. Harbourvest is currently trying to raise a $2.6 billion fund of funds now, which would be its fifth fund, according to Buyouts.

In other Abbott news, the firm promoted Matthew Smith and Meredith Rerisi to managing director.