- Further Global has been targeting $1.25 bln for debut
- UC anchor pledge in exchange for generous economics
- Big LPs look for opportunities to anchor new firms
Further Global, launched by Carlyle Group’s former financial-services chief, early in its debut fundraising got a big vote of confidence from a well-known endowment.
University of California’s endowment pledged $200 million to Further Global’s debut fund, targeting $1.25 billion for investments in financial services.
The ex-Carlyle financial services executive Olivier Sarkozy left the megashop in 2016 and started fundraising in 2017, Buyouts exclusively reported at the time.
Large LPs like UC look for opportunities to form larger relationships with managers, especially well-known executives who launch their own shops.
Such large exposure can be risky, which is why large anchor commitments often come with generous economic terms for the LP.
UC’s anchor commitment comes with revenue-sharing, sources said. Exact details are unclear. Spokespeople for the university and Further Global did not respond to requests for comment.
The anchor commitment is contingent on Further raising a certain amount, which one source pegged at $650 million. It’s unclear how much Further has raised for Fund I.
A first close was expected in early 2018; as of February 2018, the firm managed about $382.6 million on a discretionary basis, according to Further’s Form ADV.
Fund I’s management fee will be reduced by 100 percent of transaction fees, including director’s, consulting or advisory fees and breakup fees, the Form ADV said.
Further is working with Park Hill Group on the fundraising.
Sarkozy hired Richard Venn, former chairman and CEO of CIBC World Markets; Susan Ciccarone, former managing director at Goldman Sachs; and Mark Monaco, who worked at Credit Suisse, PE firm Windward Capital Management and iPayment.
Last year, Sarkozy hired Eric Leathers, a former TPG partner who led that firm’s financial-services investing, Bloomberg reported.
UC’s investment portfolio was valued at about $123.1 billion as of Sept. 30, 2018, a report from the system shows.
This included a $68.3 billion pension, a $25 billion retirement-savings program, a $12.3 billion endowment and a working-capital pool of $16.5 billion, according to investment documents from UC.
The system had an about $1.3 billion private equity portfolio as of Sept. 30, 2018, according to UC documents.
Action Item: Read more about UC Regents here: https://bit.ly/2UtzsrE