Coller passes halfway mark on latest secondaries fund – exclusive

The secondaries house is seeking $9bn for Coller International Partners VIII and is understood to have already deployed more than $1bn from the vehicle.

Coller Capital has passed the halfway mark of its latest secondaries fund as it seeks one of the largest pools of capital for the strategy, Secondaries Investor has learned.

The London-headquartered secondaries firm has collected at least $4.5 billion for Coller International Partners VIII and held a first close, according to two sources familiar with the fundraise.

Coller has already deployed at least $1 billion from the fund, one of the sources said.

CIP VIII launched in the first half of last year with a $9 billion target, according to Secondaries Investor data. Investors in the fund so far include City of Miami Firefighters’ and Police Officers’ Retirement Trust, which committed $15 million.

At $9 billion, CIP VIII would be almost 26 percent larger than its predecessor, which raised $7.15 billion upon final close in 2015.

Coller ranked ninth in the latest SI 30 ranking of the largest secondaries fundraisers, having collected $7.15 billion between January 2014 and June 2019.

The firm is one of at least six of the top 10 largest secondaries firm in market with dedicated secondaries funds. Ardian is seeking the largest amount, targeting $18 billion for its ASF VIII programme including a $6 billion co-investment pocket, while Lexington Partners is seeking $12 billion for Lexington Capital Partners IX, according to Secondaries Investor data.

Landmark Partners is preparing its return to market and told LPs in September it was planning to speak to investors about its Landmark Equity Partners XVII flagship private equity fund “in the months ahead”, according to a letter to LPs seen by Secondaries Investor.

Coller has emerged as a buyer in deals this year including the restructuring of Insight Partners‘ 2000- and 2005-vintage Funds IV and V; the restructuring of Ares Management‘s 2008-vintage Ares Corporate Opportunities Fund III and Revelstoke Capital Partners‘ 2015-vintage debut fund, as sister publication Buyouts has reported.

In its latest annual report, dated July, the firm’s chief investment officer and executive chairman Jeremy Coller wrote that market corrections were more likely than a market crash and that the firm’s strategy and expertise was well suited to turn-of-the-cycle investing.

“This is … an environment in which we feel confident to put capital to work, albeit with a very careful eye on the downside cases of our investments and on the overall diversification of our fund portfolios,” Coller wrote.

He expects the secondaries market will continue its rapid growth and evolution, with “ever wider pools of alternative assets being traded” and demand for a range of transaction types spanning simpler, intermediary-driven processes to custom-built processes for more challenging needs.

A spokeswoman for Coller Capital declined to comment.