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Coller Capital to raise $1bn fund

Jeremey Coller of the secondary player Coller Capital has said that it looks likely that the firm will raise a new fund, this time for $1 billion, probably round the summer with the aim of closing by Christmas. It is just 12 months since Coller Capital closed Coller International Partners III (CIP III) on $501 million. That fund, which was more than double the size of its 1998-vintage $240 million predecessor, was substantially oversubscribed in comparison with its launch target of $400 million.

CIP III is fully invested. This is thanks in part to Coller Capital’s participation in the purchase of the portfolio invested and managed by NatWest Equity Partners until the takeover of NatWest Bank by The Royal Bank of Scotland in late in 1999 after which the bulk of the portfolio was put up for sale.

Coller Capital invested 57 per cent by transaction value (around $1 billion) in a total of 292 companies from the NatWest Equity Partners portfolio. Coller Capital has left the management of that portfolio to Bridgepoint Capital, which is what NatWest Equity Partners became know as following its own management buyout from its then parent The Royal Bank of Scotland.

According to Jeremy Coller CIP III has returned 30 per cent to investors already and is running at an IRR of 70 per cent. Presumably, fund raising for CIP IV will, as in the case of CIP III, not present problems as a result.

A number of investors substantially re-upped their commitments to CIP III. CIP II closed in June 1998 and, like CIP III reached full investment quickly (by February 1999) – thanks in a large part to the Shell Pension Fund private equity portfolio deal.

Coller Capital, which last year lost some staff to secondary start up firm Greenpark Capital co-founded by Marleen Groen, has filled its investor relations post with Laura Grant and Tim Jones joins as director responsible for fund raising.