Schroder Private Equity Fund-of-Funds has raised euro242 million on its final closing. It held a first closing of euro172 million at the start of this year (see evcj February 2002 issue), which it partly invested in a number of buyout funds. Schroders has chosen to list this vehicle on the Dublin Stock Exchange, which had stipulated the date by which fund raising must cease. If allowed to continue the fund may have gone on to achieve its originally stated aim of euro300 million. Despite this fall off in expectation the fund has an investment capacity of up to euro315 million thanks to a 30 per cent over commitment facility.
Schroder Private Equity Fund-of-Funds is a new entrant to this segment of the private equity market, although part of the team has been running the SVIIT investment trust since its launch in 1996. The fund has raised monies from the institutional as well as high net worth individuals. The structure significantly lowers the hurdle for high net worth individuals that are otherwise largely precluded from private equity investing – minimum subscription over three instalments is euro125,000 for A shares with management fee of 1.25 per cent and performance fee, after an eight per cent hurdle at five per cent on primaries and ten per cent on secondary and direct investments. The B shares, which have a minimum subscription of euro1 million, hold a management fee of one per cent, and five per cent and ten per cent performance fees for primaries and secondaries and directs, respectively. C shares, requiring a minimum commitment of euro10 million have a management fee of 0.75 per cent, no performance fee for primaries and ten per cent for secondary and direct investments.
Expect to see Schroder Private Equity Fund-of-Funds back in the market early next year reusing this, and if not, a similar structure.