Hollyport Capital has deployed 60 percent of its fourth dedicated secondaries fund, a spokesperson for the London-based firm told Secondaries Investor.
Fund IV is a 2013-vintage fund that raised £75 million ($113.88 million; €100.46 million), according to PEI’s Research and Analytics division. Limited partners in the fund include asset manager Graphite Capital.
About £50 million of the fund was deployed in 14 transactions last year, five of which were made in the fourth quarter alone. The transactions include more than 100 interests in tail-end US and Western European private equity funds and one direct secondaries deal; although the spokesperson added the fund is not limited to one fund strategy or geography.
Earlier this month, the firm purchased stakes in Elderstreet Capital Partners, a 1999-vintage £57 million fund, and Equistone Partners’ 2002-vintage €1.25 billion Europe Fund I. A source familiar with the matter told Secondaries Investor the two fund interests were part of a portfolio sold to Hollyport by mid-market Parisian firm Fondinvest. It is not clear if there were more fund stakes in the portfolio and Hollyport declined to comment on the deal.
Fund IV’s current investment pace could lead Hollyport to fully deploy the fund sooner than expected, the spokesperson added.
This means Hollyport could launch its fifth dedicated secondaries fund during the second or third quarter of this year. Fund V will also target tail-end fund stakes as these are a “niche part of the overall secondary market,” the spokesperson explained. The fund is expected to attract existing investors, most of which are European high net worth individuals and some institutions.