Firm: Portfolio Advisors
Fund: Portfolio Advisors Private Equity Fund VII LP
Target: $1 billion
Amount Raised: $1.1 billion
Already, more than 80 percent of the new fund has been committed to GPs, according to Crotty, although only 25 percent of the money pledged to those funds has been drawn. Crotty didn’t disclose the names of any GPs in its funds.
The structure of Portfolio Advisors’ funds allows investors to pick and choose the strategies and geographies that interest them. Some LPs might concentrate on venture, while others focus on mid-market buyouts in Europe and the rest of the world. Fund strategies include diversified buyouts, venture capital, special situations and distressed debt. Geographically, LPs can select either North American mid-market buyouts or the same from Europe and the rest of the world.
Co-investments are also being offered by for the first time in conjunction with the new vehicle, and the fund also invests in secondaries. Crotty said secondary interests are mainly purchased for “J-curve mitigation.”
Roughly half of the firm’s investors commit to the fund’s “model portfolio,” and the other half chooses among the fund’s various strategies and geographies, according to Crotty.
The new fund has a “meaningful balance” of limited partners, including public pension funds, endowments, foundations and family offices, Crotty said. More than 80 percent of the new fund’s commitments come from existing investors. Among the fund’s limited partners is the El Paso City Employees’ Pension Fund, which committed $40 million. Other investors in previous funds, according to Thomson One, include the Denver Public Schools Retirement System, the Montana State Board of Investments and the San Francisco Retirement System.
While fund of funds are a major part of Portfolio Advisors’ overall business, the firm also manages separate accounts. Most of the firm’s separate accounts are targeted toward investors’ specific needs within private equity, rather than creating diversified portfolios. Overall, Portfolio Advisors has more than $30 billion in assets under management, including about $7 billion in funds of funds.