German institutional investors will benefit from Henderson Private Capital’s new fund-of-funds. The private equity arm of Henderson Global Investors has unveiled two funds Henderson North-America Private Equity Funds of Funds and Henderson European Private Equity Fund of Funds specifically for German investors. The funds aim to raise a combined amount of between €100 million and €150 million.
The investment vehicles will invest predominantly in buyout funds in North America and Europe and are designed to meet the needs of German institutional investors. “German investors have told us of the difficulties they often face investing in private equity so we have designed funds that deliver the optimal structure, together with the opportunity for significantly higher returns than listed shares,” said Jan Faber, Henderson Private Capital team’s co-head.
The due diligence and selection of managers will be jointly undertaken by Henderson Private Capital and German-based Feri Alternative Assets, both with in depth experience of selecting and analysing private equity fund managers. Faber added: “We are very excited about the planned co-operation with Feri Alternative Investments. They are an ideal partner with an exceptional understanding of the needs of German institutional investors.”
The funds will only invest in private equity funds launched in 2002 or 2003. Patrick Roeder, head of Henderson Global Investors in Germany, said: “The annual nature of the programme delivers flexibility back into the hands of investors. Investors can manage their allocations to both regions and vintage years whilst accessing top quality managers.”
The venture has not yet received antitrust approval and is subject to clearance by the Federal Cartel Office in Germany or the European Commission respectively. Henderson Private Capital’s fund investment team is based in London, New York, Singapore and Sydney and recently held a $200 million first close for the Henderson Global Fund of Funds I – see evcj March page 21.