HQ Capital raises $375m for latest FoF – updated

HQ Capital has held the final close on its latest fund of funds vehicle on $375 million after nine months of fundraising.

The New York-headquartered firm beat the $350 million target for Auda Capital VII (ACAP VII), according to a statement from the firm. ACAP VII will allocate about 30 percent to secondaries, 60 percent to primary deals, and around 10 percent to co-investments, a spokeswoman confirmed.

“We plan to diversify our fund investments across a variety of markets and industry segments,” said Marc Lohser, managing director at HQ Capital. “We will also continue to remain active in the small- and mid-sized enterprise markets because we think the competitive environment in that size range produces more attractive valuations for companies with solid risk-reward profiles.”

ACAP VII’s strategy will be to establish a portfolio of up to 500 companies and to focus on buyout and growth investments as well as co-investment opportunities. The fund offers two separate vehicles, one for US investments and one for European investments. The fund’s limited partners consist of insurance companies, pension funds and large family offices, according to the statement.

It is unclear how large the predecessor vehicle was and HQ Capital did not return a request for comment by press time.

The firm sees attractive investments in the US and Europe, whose economies remain relatively stable, notwithstanding the impact of the UK’s recent vote to leave the EU, according to the statement.

HQ Capital had more than $11 billion in assets under management as of 31 March and employs around 140 staff in 11 offices around the world, according to the firm’s website. The firm was formed in 2015 by combining alternative investment managers Auda, Real Estate Capital Partners and Equita.

– Updated with details of the fund’s allocation to secondaries, primary deals and co-investments.