Commonfund Capital has held a first close with $51.5 million for its Commonfund Capital Secondary Partners 2015, according to a Securities and Exchange Commission (SEC) filing from last week.
The firm started raising that fund about a year ago, according to an earlier filing. Both indicate the firm is seeking $75 million for its debut dedicated secondaries fund. However, Secondaries Investor previously reported that documents presented to Weber State University by Commonfund stated the fund target was $150 million.
The firm declined to comment.
The fund of funds, run by Connecticut-based Commonfund, will invest on the global private capital secondaries market and will focus on small, often less competitive transactions, from $100,000 original commitments to larger portfolios.
The main terms of the fund, which is being led by managing director Cari Lodge, vary according to the size of a limited partner’s commitment.
For those committing less than $25 million, the management fee will be 1 percent of cumulative invested capital for the first six years of the fund and 1 percent of net asset value thereafter. Commonfund defines cumulative invested capital as total capital obligation, purchase price plus the remaining unfunded commitment for all investments made to date. The carried interest is 10 percent and the hurdle rate is 8 percent for LPs investing less than $25 million.
For those committing $25 million or more, the management fee will be 0.65 percent of cumulative invested capital in the first six years of the fund and 0.65 percent of NAV thereafter. The carried interest is 6.5 percent while the hurdle rate is 8 percent.