Portfolio Advisors in market with three funds

  • Assets under management: $23.4 bln
  • Why this is important: Fund-of-funds focus on smaller LPs lacking access to managers

Portfolio Advisors is raising capital for three investment vehicles, according to SEC Form D filings.

The Darien, Connecticut, firm to date has raised $686 million in commitments for its ninth flagship private equity fund.

It has also garnered $218 million for its credit-strategies fund and $46 million for its offshore-credit-strategies fund, the filings said.

The target for the latest PE fund is unclear, but Portfolio Advisors’ eighth flagship closed in 2016 at $1.22 billion in commitments.

Earlier in the year, the fund of funds closed its third PE secondary fund at $1.5 billion in commitments.

Portfolio Advisors has been strategic in forming relationships with smaller endowments, foundations and family offices, a source familiar with the firm said.

While bigger LPs are expanding their in-house teams and seeking more co-investments, smaller LPs still need funds of funds to access managers, the source said.

Their portfolio sizes don’t justify an in-house investment team, he said.

Importantly, Portfolio Advisors’ geographic presence in Zurich and Hong Kong provides smaller LPs with access to regional managers, the source said.

Portfolio Advisors’ PE funds offer customization across PE strategies to its clients. These include buyouts, venture capital, special situations, co-investments and secondaries, its Form ADV said.

The fund of funds has eight flagship private equity funds, three secondary funds of funds and five Asia funds. The Asia funds offer investments in Asia-focused private strategies including co-investments and secondaries.

The firm also has three co-investment funds that invest directly in middle-market companies alongside sponsor relationships, the Form ADV said.

Portfolio Advisors had $23.4 billion in AUM, including $18.9 billion of discretionary assets as of March 30, 2018, the ADV filing said.

Portfolio Advisors has been expanding its credit portfolio in the past few years. In 2013 it acquired DLJ Investment Partners’ mezzanine business to get access to middle-market companies.

“Our next step is senior credit — we will focus on loans and senior tranche debt,” Brian Murphy, managing director, said in an interview with FINAlternatives in January.

The company did not return requests for comment.

Action Item: Read more about Portfolio Advisors in its Form ADV https://bit.ly/2w5antj