Pomona VI Turns Away LPs

Pomona Capital has become the latest firm to announce the close of a large dedicated secondary fund. The New York-based firm announced that it closed its sixth dedicated secondary fund, Pomona Capital VI, with $821 million.

The fund is oversubscribed, having initially sought $600 million. Pomona CEO Michael Granoff says that the firm turned away “another few hundred million.”

Granoff declined to say what LPs were turned away, but he points out that no large public pensions were denied the opportunity to invest as a result of disclosure issues. He cites the investment by returning LP University of Texas Investment Management Corp. as evidence of that.

Among the new LPs that Pomona added are the State of Florida and the State of Wisconsin as well as Paris-based French pension authority Caisse de Depots.

Granoff wouldn’t disclose the fund’s full list of investors, but LPs in previous Pomona funds include BancBoston Investments, Blackstone Management Corp., Chase Capital Partners, Siguler Guff & Co. and South Ferry, according to Thomson Venture Economics (publisher of PE Week).

Pomona Capital VI will purchase buyout and venture funds as well as direct secondary portfolios. The firm generally purchases more buyout assets than venture due to the difference in volume of those assets on the market. Its last dedicated secondary fund, the $582 million Pomona Capital V, which was fully invested as of Q2, is about 25% invested in venture assets.

The new fund has made commitments, and Granoff expects that deals will close within the next 90 days. The fund’s management fee and carry structure did not change from its last dedicated secondary fund, and its geographic focus will remain on North America and Europe.

Earlier this year Pomona closed Pomona Partnership Holdings IV, its fourth fund-of funds, with $250 million. The firm initially set out last fall to raise $200 million for the FoF and raised its goal due to increased limited partner demand.