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Commonfund hits three-quarter mark on flagship fund

'If you go out five or six years, I think the secondaries market could easily double in size,' managing director Cari Lodge told Secondaries Investor in September.

Commonfund Capital has held an interim close on its latest secondaries fund after around a year in market.

The Wilton, Connecticut-headquartered manager has raised $414 million for Commonfund Capital Secondary Partners III against a $550 million target, according to a filing with the Securities and Exchange Commission. The fund made a first sale in May 2020, the filing shows.

Commonfund’s 2017-vintage Fund II raised $450 million by final close in 2019, more than two-and-a half times the amount collected for its 2015-vintage debut fund. Investors in that fund include Jewish Federation of Greater Indianapolis and The William Penn Foundation, according to Secondaries Investor data.

Speaking with Secondaries Investor in September, managing director Cari Lodge said she envisaged a record 2021 for GP-led deals as more sponsors try to hold on to their best assets. “If you go out five or six years, I think the secondaries market could easily double in size,” she said.

Commonfund offers an outsourced chief investment officer business and investment management services to endowments, foundations and public pension funds. It targets smaller, less competitive transactions across private equity, venture capital and natural resources on a global basis, Lodge said. It seeks a high degree of diversification through LP portfolios and GP-led deals, where it participates as a syndicate member.

The 10 secondaries funds to hold final close in the first quarter of this year raised a combined $18.1 billion, according to Secondaries Investor data. The figure, which is down on last year’s peak of $24.3 billion, is the third highest first-quarter total after the $19.7 billion raised in 2017.

Commonfund did not respond to a request for comment.