Baring Asset Management has launched a $20 million secondaries feeder fund to invest directly into Coller Capital’s fourth fund, Coller International Partners IV (CIP IV). Baring launched the Baring-Coller Secondaries Fund to give access to smaller investors wishing to tap into the secondaries market. The minimum investment into CIP IV is $10 million, while investors in the Baring-Coller Secondaries Fund can invest a minimum of $100,000 to gain access to this asset class.
This is the first time Baring has launched a secondary private equity feeder fund. Melanie Wotherspoon of Baring Asset Management, said: “We have had clients who have invested in Coller funds before and we wanted to give access to those investors who have lower investment criteria. We also think that it is a good time to look at secondaries as an alternative given current market conditions.”
Baring anticipates a close mid-September and will invest in secondary private equity interests managed by Coller Capital. CIP IV invests globally in secondary positions in private equity partnerships and portfolios of direct investments. The fund focus is on purchasing European and US assets from investors worldwide.
Private equity secondary funds are being driven by two main factors growth of the primary private equity fund market, which has seen over $1 trillion committed to it since 1990 and the economic and market dislocation affecting investors, which has driven certain investors to seek liquidity prior to the maturity of their investments. It is estimated that between 0.5 per cent and three per cent of primary investments (between $5 billion and $30 billion) are offered through the secondary market per year. Completed transaction, however, is likely to be significantly slower.