BEX Capital collects €120m for FoF secondaries

The niche firm, founded by a former AlpInvest Partners secondaries executive, raised the hard-cap on its oversubscribed sophomore fund.

BEX Capital, a niche secondaries firm focusing on stakes in funds of funds, has held the final close on its sophomore fund after about nine months of fundraising.

The Paris-headquartered firm raised €120 million for BEX Fund II, according to a statement. The fund had launched at the end of last year with an initial €80 million target, and its hard-cap was raised to €120 million from €100 million.

Fund II will mainly focus on acquiring interests in private equity funds of funds and secondaries funds themselves. Investment sizes range from between €1 million to €200 million, and BEX will work with co-investors on its larger deals.

The fund is almost 25 percent invested across two deals – one involving a US seller, the other involving a European seller, BEX founder and managing partner Benjamin Revillon told Secondaries Investor.

BEX did not use a placement agent for the fundraise.

Limited partners from around the world committed to the fund including family offices and individuals at primary private equity managers.

The firm’s debut fund is a €50 million vehicle that contained a similar mix of LPs, Roex said.

BEX expects its majority of dealflow to be driven by portfolio management reasons as LPs in funds of funds sell their stakes as they increase primary fund commitments or change their strategies, Erwin Roex, who has become managing partner after being the firm’s non-executive chairman, told Secondaries Investor.

“For most investors who invested in funds of funds, it’s mostly due to the fact they wanted to enter the asset class but they didn’t feel confident enough in their capacities and capabilities to analyse the industry or a specific manager,” Roex said.

“There’s quite a bit of legacy funds of funds in private equity programmes that have moved beyond funds of funds and the investor invests directly in primary funds. A number of them decide to divest those, and that’s clearly to do with the maturity of industry.”

Roex, initially an investor himself in BEX Fund I, founded AlpInvest Partners‘ secondaries business in 2001 and was a partner at Coller Capital for almost 12 years, according to the statement.

He joins Revillon and two other team members, with the firm soon due to appoint a fifth professional as chief financial officer and chief operating officer.

BEX was founded in 2010 and has at least €200 million under advisement.

– This article originally stated that Roex was joining three other managing partners; he is joining founder and managing partner Revillon.