New York-based secondary firm Private Equity Investors (PEI) had a first close on its fourth fund, taking in $35.5 million, according to a filing with the Securities and Exchange Commission. A source familiar with the firm tells Buyouts that the firm has a goal of $150 million and is aiming to close the fund before the end of the year.
PEI is essentially rebuilding its limited partner base as it raises Private Equity Investment Fund IV. Many of its previous LPs were large financial institutions that have been exiting private equity over the past several years. Given the size of the fund, the firm has been focusing its efforts on smaller LPs such as corporations, endowments and family offices.
With a particular focus on more mature interests, PEI purchases buyout, growth equity, mezzanine and venture capital interests usually with asset values less than $25 million. The firm has purchased more than 130 private equity funds, mostly based in the United States. PEI also has a corporate secondary program, PEI Corporate Ventures, that it runs in collaboration with corporate VC veteran and Israel Infinity Fund Managing Partner Kenneth Rind.
PEI was founded in 1992. It is headquartered in New York and has regional partners in Chicago, San Francisco and Tokyo. The firm is run by co-founders and Managing Partners Charles Stetson and David Parshall and Managing Director Gunnar Fremuth.