The macroeconomic and private equity environments have merged to create the perfect storm of opportunity in the secondaries market. Deal flow, asset choice and pricing power have increased substantially as limited partners of all types seek liquidity. It has been forecasted that the largest fund raising of the year in the private equity market would be a secondaries fund and London and New York-based Pomona Capital has gone on record with a US$1.3 billion launch.
Pomona Capital, a US$6bn private equity firm that is in a strategic partnership with the ING Group, reached the final close of its seventh secondaries fund, Pomona Capital VII, with commitments of US$1.3 billion – 30% over its target of US$1 billion. Pomona Capital VII, like its predecessor funds, will purchase interests in buyout and venture capital funds, as well as portfolios of private equity-backed companies, from investors that need liquidity.
Pomona owns partnership interests in over 500 private equity funds with investments in over 4,000 companies. “Over the years, Pomona has executed a differentiated middle-market value strategy in the secondaries business” said Pomona C.E.O. Michael Granoff. “Our approach resonates with investors who recognize the long-term attractiveness of private equity but are concerned about risk.” Limited partners participating in the fund include U.S., European and Asian public and corporate pension funds, financial institutions, corporations, endowments, foundations and family offices.