ACE to launch third secondaries fund – exclusive

The Geneva-based firm will launch a secondaries fund targeting 'under the radar' deals before year-end.

ACE & Company, a co-investment and secondaries specialist, plans to launch its third secondaries fund before the end of the year, according to co-founder and director Sherif El Halwagy.

The Geneva-headquartered firm will target $15 million for the new fund, which will be called ACE Secondary Investments III and will focus on small-sized stakes in top-quartile funds, El Halwagy told Secondaries Investor.

“We like to look for opportunities which may be below the radar,” El Halwagy said. “Our funds are smaller than most of our competitors and we have to stay that way to be able to do the type of deals we do.”

ACE expects to execute between 15 to 25 deals from the fund and will focus on acquiring mature stakes in North America and Europe.

The firm’s main co-investment business invests across basic resources, technology, consumer goods and services, and financial sectors. ACE uses co-investment vehicles for deals that may be too large for its secondaries funds, El Halwagy said.

ACE has two other dedicated secondaries vehicles, both $15 million in size. The most recent, ACE Secondary Investments II, was raised in 2013 and has acquired 14 stakes in funds by managers including Apax Partners, Apollo Global Management, CVC Capital Partners and KKR, according to ACE’s website.

Founded in 2005, ACE & Company allocates about 10 to 15 percent of its strategy to secondaries. The firm has $450 million in assets under management and employs 32 staff across five offices around the world.

The firm’s investments range from business angel to buyout, growth capital and special situations, according to its website.