– Adveq tech fund-of-funds is oversubscribed

Advisers on Private Equity (Adveq) in April revealed a $230 million (248 million) final closing total for its second high-tech fund-of funds, Private Equity Technology Partners II CV (PETP II), which was launched last autumn with a $200 million target.

PETP II is more than three times the size of its 1997-vintage predecessor, which is currently registering a triple-digit’ IRR on realised investments from its underlying fund portfolio, according to Adveq co-founder and managing director Dr Andre Jaeggi. Investors in the first PETP fund include Swiss Life, Swiss Re, UBS and Feri Trust.

Adveq has not named participants in PETP II. Dr Jaeggi reports that, although roughly 60 per cent of PETP II was drawn from sources in German-speaking Europe,

Adveq has deliberately expanded its investor base outside its home turf through the latest fund-raising exercise. Repeat investors nevertheless provided around two thirds of the new fund. Commitments from financial institutions comprise around 80 per cent of the vehicle, while the balance was raised from high net worth individuals.

The fund-of-funds will invest in focused high-tech early-stage and seed capital vehicles across all industries. Like its predecessor, PETP II will be weighted heavily towards US-focused funds, which will absorb approximately 80 per cent of its capital; the balance will be deployed in partnerships investing in Europe and the Far East, and Adveq may invest a maximum of 20 per cent of PETP II in first-time funds.

Dr Jaeggi reports that PETP II is already 40 per cent committed to 13 partnerships, including recent funds from Accel, Delphi, Highland, Morgenthaler and Sequoia. Like all Adveq funds, PETP II has a 15 per cent hurdle rate.

Later this year, Adveq will begin marketing a successor to Private Equity European Partners CV (PEEUP), its 95 million 1998-vintage Europe-focused fund-of-funds. PEEUP is currently approximately 60 per cent invested in 11 funds spanning the full spectrum of investment stages and industry sectors. PEEUP II will also be larger than its predecessor and Dr Jaeggi says that Adveq will soon “define a target for broadening our investor base in the context of what we know we can place quality-wise”.

Adveq’s founders Bruno Raschle and Dr Jaeggi were joined at the beginning of this year by Peter Laib, who was previously a principal at AT Kearney Management Consultants in Germany, focusing primarily on the automotive industry.