German private bank Sal Oppenheim has raised EURO60 million for the first close of its most recent offering, Oppenheim Private Equity Holding. The fund-of-funds will hold further closings later in the year and hopes for a final close in December to reach its target of EURO150 million.
The fund has a German investor base and has already attracted funds from significant institutional investors as well as Sal Oppenheim’s private clients. Around 20 per cent of investors are Sal Oppenheim’s private clients and also first time investors in private equity. Peter Ischebeck of the firm said: “It has been tough fund raising, also because we have been approaching first time investors. But we are quite confident we will reach our target.” The bank has committed 15 per cent from its own balance sheet, which Ischebeck says reflects the bank’s growing commitment to private equity.
The bank is also offering institutional investors specialised private equity services, which can be customised to the client’s needs. Such services include separate account advisory and specialised fund management services.
Commitments from the fund will be made to both US and European funds. Around 60 per cent will be allocated to the US and will be managed by Portfolio Advisors, a leading private equity investment adviser and manager based in Darien, Connecticut.
Ischebeck expects around 65 per cent of the fund to be allocated to buyout funds and 35 per cent for venture funds. “We believe the vehicle will be more buyout-oriented due to less venture capital opportunities in Europe,” he said.