Adams Street Partners is targeting $750 million for its fifth secondaries fund, a source close to the firm told Private Equity International. The Chicago-based private equity firm is in the process of raising the fund.
Adams Street will focus on a number of investment “themes” with the fund, the source said, including energy, developed Asian buyout funds and pockets of consumer recovery in established and emerging markets.
The source declined to give the official name of the fund.
The firm entered the secondaries market in 1986. Through its first four funds, Adams Street maintains over $3.5 billion in secondary assets under management across roughly 100 transactions, according to its website. Its most recent secondaries fund, Adams Street Global Opportunities Secondary Fund II, closed on $730 million in 2009.
Adams Street’s decision to come to market is well-timed. New regulations have forced many financial institutions to divest from illiquid assets while several US pension funds, including giants like the California Public Employees’ Retirement System, have entered the secondaries market as sellers in an effort to trim back the number of manager relationships in their portfolios.
Several sources have indicated that secondary deal volume could surpass $30 billion, shattering last year’s record of around $20 billion.