FLAG Capital collects pledges for latest flurry of funds of funds: UPDATED

Firm: FLAG Capital Management LLC

Funds/amount raised/target:

FLAG Private Equity V LP/$217.3 million/$220 million (closed)

FLAG Venture Partners VIII LP/$177.4 million/$275 million (open)

FLAG Global Partners LP/$52.3 million/$125 million (closed)

The firm, which manages nearly $7 billion in commitments, much of it organized through funds of funds, has had several funds recently in the market. One is FLAG Private Equity V LP with an offering amount of $220 million, of which about $217 million was raised, according to a Form D filed Oct. 29; the fund, which beat its initial target of $200 million, held its final close on Oct. 15, said a source familiar with the firm.

It is not exactly clear the strategy of this or several other funds managed by FLAG Capital. However, according to the firm’s website, on the private equity side of the market the firm backs middle-market and lower-middle-market funds of up to $1 billion in size, including ones pursuing growth equity investments, buyouts and turnarounds. The firm favors funds that specialize in a particular industry, country or region, although it will also back generalist funds. The firm appears to have an appetite not just for primary funds, but also for secondary interests, co-investments and direct investments.

Also closed is FLAG Global Partners LP, with an offering amount of $125 million, of which about $52 million was raised, according to a Form D. This fund also closed on October 15, our source said. This pool is a feeder fund that gets allocated to other FLAG Capital funds. From the website: “For investors seeking an integrated solution and single commitment to improve and simplify the professional management of their private capital portfolio we offer the FLAG Global Partners Program which reflects our optimal geographic and subclass allocations for a global private equity portfolio.”

Still in the market is FLAG Venture Partners VIII LP with an offering amount of $275 million, of which about $177 million has been raised. According to our source, this fund may take in some additional capital before closing toward the end of November. The firm’s website suggests that its venture funds of funds are earmarked for a mix of established and emerging fund managers. As with its private equity counterpart, the venture team has experience investing in primary funds, secondary interests and direct investments.

Also set to wrap up toward the end of November are FLAG International Partners III LP, primarily earmarked for venture, growth equity and buyout funds investing in Asia and Europe, and FLAG Asia Partners III LP, eamarked mainly for Asian venture, growth equity and small buyout funds (a parallel fund, FLAG Squadron Asia Partners III, is set to remain open until the first quarter of 2014), according to our source. Other funds in the market from FLAG Capital include one earmarked for energy and resources and one for real estate.

Founded in 1994 and based in Stamford, Conn., the firm manages money for public pensions, corporate pensions, wealthy investors, endowments and foundations. The firm’s website lists about 68 employees working in offices in Stamford, Boston and Hong Kong; the founding partners are Diana Frazier and Peter Lawrence.

FLAG Capital has been a backer of such buyout shops as American Industrial Partners, CapStreet Group, Endeavour Capital, H.I.G. Capital, Housatonic Partners, Mainsail Partners, Siris Capital, SK Capital and VMG Partners, according to our source; according to Dow Jones, on the venture side of the market it has backed such firms as Accel Partners, Austin Ventures, Battery Ventures, Mayfield and Mohr Davidow Ventures.

(UPDATE/CORRECTION. This story has been updated from the original with details from a source familiar with the firm. It has been corrected to note that FLAG Private Equity V LP and FLAG Global Partners LP are now closed)