Banner Ridge hits hard-cap on flagship fund

Banner Ridge Partners, founded in 2019 by Siguler Guff‘s former secondaries head, has held final the close on its second flagship fund.

The New York-based outfit has hit the $1 billion hard-cap on Banner Ridge Secondary Fund IV in an oversubscribed fundraise, according to a statement. The fund’s target was $600 million and it had been in market since March, according to Secondaries Investor data.

“The pandemic has created an incredible opportunity for us to make unique secondary investments in a market that rewards both complexity and innovation,” said partner and co-founder Anthony Cusano, adding that the fund has already made several investments. 

Banner Ridge’s secondaries funds mainly acquire stakes in distressed, special situations and credit fund, and back GP-led deals

Its 2019-vintage debut Fund III raised $550 million, against a target of $350 million, according to Secondaries Investor data. New Mexico Educational Retirement Board committed $100 million to each of Fund III and Fund IV.

In March, Banner Ridge raised $300 million for its debut primary fund to invest in distressed, special situations and credit strategies, Secondaries Investor reported.

Banner Ridge DSCO Fund I was designed as a vehicle for two institutional clients with a $100 million to $150 million target. The outbreak of covid-19 spurred fresh interest in distressed and special situations. Cusano said the firm could have raised more than $300 million for that vehicle.

Secondaries funds raised $48.7 billion in the first three quarters of this year, compared with $58.5 billion in the same period of last year, according to Secondaries Investor data.