Capital Dynamics closes secondaries fund above target

The manager will invest in smaller, off-market opportunities in the LP portfolio- and GP-led markets.

Capital Dynamics has held the final close on its fifth flagship secondaries, having come to market three years ago.

Capital Dynamics Global Secondaries V raised $786 million, surpassing its target of $700 million, according to a statement. It is not clear if this represents the fund’s hard-cap. The vehicle will target smaller “off-market opportunities” on a global basis in the LP stakes, GP-led and structured solutions markets.

“Since the start of the covid-19 pandemic, we have experienced heightened dealflow from high-quality sponsors seeking LP liquidity or fund restructuring options to weather the volatile macroeconomic environment,” said head of secondaries Joseph Marks in the statement.

The Zug-headquartered investment manager held a first close in August 2019 on $180 million, Secondaries Investor reported.

Limited partners in Fund V include Oxfordshire County Council Pension Fund, Clwyd Pension Fund and City of Fort Lauderdale General Employees’ Retirement System, according to Secondaries Investor data. The vehicle also received support from the LPs in the Middle East and Asia, the statement noted.

Predecessor Fund IV held final close in July 2016 on $564 million, above its $350 million target.

Deals the firm has backed include the restructuring of Indian growth healthcare fund Asia Pacific Healthcare Advisors and the acquisition of a 2006-vintage portfolio of stakes from Italian fund of funds Advanced Capital, Secondaries Investor has reported.

GPs to have closed secondaries funds so far in 2021 include Coller Capital, Montana Capital Partners and Hamilton Lane, Secondaries Investor reported.