Return to search

Coller closes largest ever secondaries vehicle

Coller Capital, a UK-based private equity secondaries firm, has held a final close of its fifth fund, the largest secondaries vehicle ever raised, with total commitments of US$4.5bn.

According to the firm, the fund was originally capped at US$3.75bn, but received investor interest of up to US$5.6bn late last year, more than double the US$2.6bn raised in 2002 for Fund IV. As a result, the firm agreed with investors to raise the cap for Coller International Partners V (CIP V) to US$4.5bn.

Despite the significant increase in fund size, CIP V is already one quarter invested. In April, Coller Capital announced that it had taken a 45% stake in Shell Technology Ventures Fund 1, a fund set up by the petrochemical giant to back technologies used in oil and gas exploration and production. Shell will retain a 55% stake in the new fund, which contains 34 technology investments including Eventure Global Technology and Well Dynamics.

CIP V will invest in private equity portfolios globally, thereby providing liquidity for its original investors, and will make investments of between US$1m and US$1bn.

“The record size of CIP V is a testament to the value of the secondaries market as a whole,” said Jeremy Coller, chief executive. “By providing liquidity to a previously illiquid asset class, secondaries have significantly increased private equity’s attractiveness to institutional investors.”

Coller’s claim is borne out by the variety of the new fund’s investor base. About 41% of committed capital comes from North America, 34% from Europe and 25% from Asia and the Middle East. In terms of type, 41% of the investor base were pension plans – albeit providing 61% of the committed capital – charitable foundations and endowments represent 18%, with 12% family offices and private trusts, and 11% insurance companies. Remaining investors include banks and asset managers, government bodies and corporations.

Robert Venes