Schroders and SVG Advisers have reached a final close of the Schroder Private Equity Fund of Funds III (SPEFOFIII) at €422m, significantly exceeding both the €242m and €285m raised for the previous two Schroder Private Equity fund-of-funds.
SPEFOFIII has received commitments from a diverse group of investors, both in terms of geography and type. Stronger interest has been shown in this fund by UK pension schemes, family offices and charities than in the first two funds. Alongside new investors to the SPEFOF programme, existing investors in the first and second fund-of-funds have continued their support by committing in excess of €180m to the third fund.
The fund will invest in top performing private equity partnerships predominantly in Europe and the US. The portfolio will consist of approximately 20 private equity funds, selected to provide an attractive return and diversification, with a focus on later stage and buyout funds. Commitments have already been made to nine funds, totalling over €200m.
Similar to its predecessor funds, SPEFOFIII has been structured to meet the requirements of both small and large institutions, as well as high net worth individuals, and is listed on the Irish Stock Exchange. Its structure offers investors the choice of three separate share classes with differential pricing, allowing for a minimum investment of €125,000, payable in four installments.
Richard Mountford, head of UK distribution, Schroders, said: “More and more institutional investors and high net worth individuals are seeking diversified portfolios made up of asset classes that are less correlated. Private equity has a low correlation with traditional asset classes, and increasingly investors are looking at alternative asset classes for growth in their portfolios. These attributes of potential return and diversification are taking private equity up the investment agenda. “