Arcano beats target with €450m for fourth dedicated PE secondaries fund

To date, the fund has closed on more than 30 secondaries investments at attractive discounts as well as some direct co-investments in companies.

Spain’s Arcano Asset management has exceeded its target for its fourth dedicated private equity secondaries fund on €450 million.

Arcano Secondary Fund XIV, which had an initial target of €300 million, has reached a final close, according to a statement. The vehicle spent just over two years in the market having launched in October 2020, according to Secondaries Investor data.

The fund targets smaller, less competitive transactions at attractive discounts across LP stakes and GP-led transactions in the US and European mid-market buyout space.

To date, the fund has closed on over 30 secondaries investments as well as some direct co-investments in companies, the statement said.

The fund can allocate up to 20 percent to direct co-investments and will mainly focus on the mid-market of Europe and the US, Secondaries Investor reported at the time of the fund’s launch.

Arcano’s fourth dedicated secondaries fund follows 2011-vintage Arcano Secondary Fund, 2014-vintage Arcano Secondary Fund II and 2016-vintage Arcano Capital X.

Arcano secondaries and funds of funds are considered part of the same series and are numbered accordingly, a spokesperson told Secondaries Investor when Fund XIV launched.

Fund X was €180 million in size, surpassing its €150 million target, according to Secondaries Investor data.

In 2021, Arcano raised €200 million against a €300 million target for its debut impact fund of funds, Arcano Impact Private Equity Fund, which makes primary fund investments alongside secondaries and direct co-investments, Secondaries Investor reported that year.

In late 2020, the firm raised €292 million for Arcano Earth Fund, its sustainable infrastructure fund, which invests via primaries, secondaries and direct co-investments.

Secondaries firms have $131 billion of dry powder available to deploy as they kickstart 2023, up from the $105 billion available at the beginning of 2021, according to Evercore’s 2022 Secondary Market Synopsis.