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European secondaries funds aim higher

European funds on average aim to raise nearly 50% more than US peers, according to PEI Research & Analytics.

European secondaries funds in market have higher targets on average than their US and Asia-Pacific counterparts, according to PEI Research & Analytics. The figures include both private equity- and real estate-focused secondaries funds currently in fundraising mode.

The average target size of a European secondaries fund presently in market is roughly $387.7 million, significantly higher than the $261.4 million average being targeted by US funds and the $213.6 million targeted by Asia-Pacific funds. The averages do not include globally focused ‘mega-funds’ being raised like Landmark Partners’ Fund XV, which as of earlier this year was well on its way towards a $2.5 billion target.

Of the seven Europe-focused secondaries funds in market, French firms Fondinvest Capital and Committed Advisors lead the market in terms of target size, each aiming for €400 million ($543.7 million) with their respective Fondinvest IX and Committed Advisors Secondary Fund II. Aberdeen Asset Management, which manages the only European real estate secondaries fund in the market, is targeting €300 million.

In the Americas, Origami Capital Partners has the largest target. The Chicago-based firm is seeking $1 billion for its Origami Secondary Fund II. However, there are 11 secondaries funds in market in the Americas, including several vehicles seeking less than $100 million. Two of the smallest funds are Akkadian Ventures’ third fund and Belveron Real Estate Partners’ second fund, which are targeting $35 million and $40 million respectively.

Secondaries funds in market in the Asia-Pacific region are generally smaller and fewer in number. Of the five funds currently fundraising, NewQuest Capital Partners’ NewQuest Asia Fund II is the largest, targeting $330 million and WM Partners’ debut fund is targeting ¥10,000 ($98 million; €72 million).