Connecticut-based Landmark Partners late last month wrapped up its most recent secondary fund oversubscribed. The fund, Landmark Equity Partners X, was sporting a cover of $500 million, though the firm was only expecting to raise approximately $400 million. The total capitalization of the fund weighs in at $583 million.
Landmark launched this fund in July 1999 and held a first closing on $350 million last June. The fund was well received by return investors as well as some new investors. “These investors represent a sophisticated group of investment professionals that recognize the very attractive attributes that secondaries offer – consistent, strong returns, early return capital, [and] diversification,” said Francisco Borges, the president and a managing partner at Landmark.
Fund X began making investments immediately after the June 2000 first close and is currently 35% invested. Most recently, Landmark co-invested with Credit Suisse First Boston and Pantheon Ventures to acquire Bank of America‘s $260 million portfolio interests in approximately 60 buyout and venture capital funds.
In fact, Landmark is seeing the volume of secondary activity ballooning and Landmark may be back in the market before the year’s end, Borges said. “The market for secondaries is experiencing significant growth, driven by market conditions, over-allocations, mergers and acquisitions and the need to make more room for fresh commitments, as well as the changing needs of investors,” he said. “Given our progress to date and our growing, strong and very attractive pipeline of transactions, we may very well be back late this year with another secondary offering.”
Presently, Landmark is marketing two other funds – Landmark Growth Capital Partners, a direct investment vehicle that invest growth capital in small- and mid-size companies where labor has a presence, and Landmark Real Estate Fund IV, the firm’s third real estate secondary fund (Buyouts Nov. 6, 2000, p.8). Borges said Landmark anticipates a first close for Growth Capital Partners “in the not-too-distant future” and a first close for the real estate fund next quarter.