AXA Private Equity is on track to close its second fund-of-funds vehicle at €250m at the end of this month – see EVCJ July/August 2003 for details on the fund’s first close. The fund is structured to make private equity fund investments in North America and the EU and is principally seeking to invest in the early secondary market, where funds are already 20% to 50% invested. This is a move away from the typical secondary market, where AXA already invests, which usually seeks to make investments in funds that are at least 70% committed. The fund will also invest in some primary positions.
The fund is already 25% committed and has made seven investments to date. The fund will be looking at opportunities in Europe and the US with 29% allocated to the UK, 49% to continental Europe and 22% to the US. The majority of investors in the fund are European (68%) with 20% from the US, 7% from the Middle East and 5% from Asia.
AXA Private Equity Fund of Funds II is structured as two separate vehicles for primary investments, one US and one European. This allows the primary investments to be made by either vehicle.
As far as vintage years of the portfolio investments are concerned 53% of the portfolio will have a 2003 vintage, 28% will have a 2002 vintage, 16% a 2001 vintage and 2000 will take the remaining 3%.