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Five Arrows readies for secondaries fundraise

The Rothschild Group subsidiary is expected to raise Fund IV soon.

Five Arrows Secondary Opportunities (FASO) is preparing plans to launch its Fund IV next year, according to two sources familiar with the firm’s plans.

One source noted the firm’s Fund III was on track to be 75 percent deployed this year, opening the door for Five Arrows to launch Fund IV.

It’s understood FASO has not officially launched fundraising and target amounts could be changed, though sources suggested the firm would try to raise €500 million.

Five Arrows could not be reached for comment at press time.

FASO III held a €259 million final close in July 2012, beating its target of €200 million. FASO III only took “a few months” to raise, the firm said at the time.

Marc-Olivier Laurent, head of Rothschild’s merchant banking division, told PEI at the time: “FASO III’s focus on tailored liquidity solutions, in a market segment that falls below the radar of large publicised auctions, presents significant opportunities.

“We expect the current market environment will generate a steady flow of opportunities from sellers seeking liquidity driven by economic uncertainty, new regulatory constraints or simply the need to exit the asset class,” Laurent added.

Created in 2003, the FASO team focuses on European small and mid-cap secondaries transactions below the €100 million-mark. FASO sits within Five Arrows Private Investments, itself a subsidiary of the Rothschild Group.