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Banner Ridge hits hard-cap on flagship fund

The firm, founded by Tony Cusano, has raised $1bn to invest in special situations, distressed and credit secondaries opportunities.

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.