CapDyn acquires Italian FoFs manager

The secondaries firm bought a large chunk of Advanced Capital's PE portfolio last year, Secondaries Investor revealed.

Capital Dynamics has acquired an Italian private equity funds of funds manager after buying part of its portfolio last year.

The Swiss-headquartered alternatives manager, which has $15 billion in assets under management, has agreed to acquire the entire share capital of Advanced Capital SGR for an undisclosed sum, according to a statement, in a deal set to close during the third quarter.

The source of funding for the deal is not clear.

In December 2016, the Milan-based firm sold a majority of its €321 million, 2006-vintage ACII fund of funds to Capital Dynamics in a process run by UBS, Secondaries Investor revealed. The portfolio contained stakes in 26 buyout funds and had a net asset value of around $145 million as of 30 September.

Founded in 2004, Advanced Capital has $1 billion in assets under management across four generalist private equity funds of funds, a real estate fund and an energy fund, according to its website.

AC IV was the first of Advanced’s funds of funds to invest in secondaries and make co-investments, according to the its UN Principles for Responsible Investing report from 2014.

Advanced Capital’s chief executive is Robert Berlé, co-founder of one of Italy’s first merchant banks, ABK, formerly Arca Merchant. Its chairman is Robert Tomei, a former advisor on alternative investments at Merrill Lynch, according to the firm’s website.

Capital Dynamics’ last dedicated secondaries fund hit final close on $564 million in July 2016, exceeding its $350 million target, according to PEI data.

A follow-up fund was registered in Luxembourg in March.

Italy has been the site of a number of secondaries transactions over the past year, including the spinouts of Fondo Italiano d’Investimento and Banco Popolare de Vicenza.