Auda Has $385M For Co-investments

Firm: Auda Advisor Associates

Fund: Auda Capital IV

Amount Raised: $787 million, including $402 million U.S. buyout fund of funds, and a $385 million co-investment vehicle

Auda Advisor Associates, New York, has closed a $385 million U.S. buyout co-investment fund, a companion vehicle to a $402 million fund of funds raised last year.

The firm, which has more than $4.5 billion under management, co-invests alongside some 50 private equity firms, many of which it has backed through its funds of funds. The co-investment vehicle is earmarked for up to 30 deals, said Auda Advisor Associates Senior Vice President Don Rigoni.

Fundraising for both the co-investment vehicle and the fund of funds, Auda Advisor Associates’ fourth, began in August 2005. The firm finished raising the fund of funds last fall, but it had to hold off on the final close for the co-investment vehicle until recently to accommodate a few investors. The firm has a global investor base. About 70 percent of its investors are institutions while the balance are high net worth individuals.

About 80 percent of the fund of funds will go to LBO shops, roughly 10 percent will go to late stage venture and 10 percent will go to distressed funds. Three quarters of the fund will end up in the middle market, with the rest going to mega-funds, said Rigoni. “We tend to shy away from first-time funds,” said Rigoni. “Our niche is with experienced managers. We’ve had success with that.”

The fund-of-funds capital will end up on the ledgers of about 15 fund managers. In the past, the firm has backed funds managed by American Securities Capital Partners, Bain Capital, J.W. Childs Associates, Kelso & Co., Leonard Green & Partners, and Sun Capital Partners.

Auda Advisor Associates’ third fund of funds closed on $240.9 million in 1999. It also raised a secondary fund in 2003 with $410 million in commitments. Founded in 1989 and with German roots, the firm has offices in London, Stockholm, New York and Bad Homburg, Germany. The firm got its start managing capital for the Harald Quandt family.—M.C.