Schroder Ventures, the London-based affiliate of Schroders PLC, last month closed its second European private equity fund, Schroder Ventures European Fund II, at EURO3.5 billion ($2.91 billion).
The fund held a first close in May on EURO3 billion. That was a mere three months after its formal launch. The fund was reportedly oversubscribed, with EURO4.5 billion at its fingertips, however, Schroder had already set a cap of EURO3.3 billion for outside investors.
Approximately EURO200 million of capital came from in-house co-investment vehicles.
The minimum commitment to European Fund II was EURO10 million, which originally eliminated many smaller investors from participating. However, the firm recognized the market of investors who couldn’t reach the minimum and responded by launching Sapphire, a vehicle to attract the smaller investors that allowed them to get in on the fund.
Sapphire is set up to bypass fund-of-funds managers and instead goes directly to the investors, who commit to a vehicle that can only invest into the Schroder fund.
It requires only two capital calls, one on the first day for 60% and the next after two years for 40%. The minimum commitment is EURO100,000.
Sapphire is committing EURO100 million to European Fund II.