Coller expects to close Fund VII in Q4

Coller Capital expects to close its Coller International Partners VII in the fourth quarter of 2015, according to documents from NEPC, the consultant for the New Hampshire Retirement System (NHRS).

A spokesperson from Coller declined to comment.

Fund VII launched last year with a $5.5 billion target and a $6 billion hard-cap. The fund has yet to hold a first close but has received $50 million from NHRS and $75 million from the Louisiana State Employees’ Retirement System. The fund will also include a general partner commitment of at least 1 percent.

Limited partners in the fund will pay one of two management fee structures. In the first option LPs will pay a fee of 1.5 percent of committed capital during the five-year investment period, reducing to 1.25 percent of invested capital for 12 months and 1 percent for the following 18 months. Subsequently, they will pay 0.9 percent of the prior period’s fee or 0.5 percent of invested capital. Class A investors will pay a 10 percent carried interest rate and a 7 percent preferred return.

In the second option LPs will pay a 0.85 percent management fee during the investment period reducing to 0.85 percent of invested capital, until Class A’s fees are lowered and the two types of investors pay the same fees. Class B LPs will pay a 20 percent carried interest rate with a 7 percent preferred return.

Fund VII will follow the same strategy as its predecessor in acquiring large secondaries positions in portfolios of private equity interests and direct investments. The average investment size has been $90 million per deal.

Fund VI raised $5.5 billion in 2012. The fund was generating a net internal rate of return of 30 percent and a total value paid-in multiple of 1.5x as of 30 June 2014.