Keyhaven holds first close on new secondaries fund – exclusive

The London-based firm also launched its fourth fund of funds vehicle this year.

Keyhaven Capital has held a first close for its Keyhaven Secondaries Fund II, Secondaries Investor has learned.

The firm held a “significant first close” on Keyhaven Secondaries Fund II, which is targeting €350 million, according to a source familiar with the fundraising. A hard-cap has not been set.

Fund II will follow a similar strategy to its predecessor, Keyhaven Secondaries Fund I, which has invested in funds, portfolios of funds and direct secondaries in the European small-cap market. The firm executes most of its deals through its relationships with general partners, avoiding auction processes.

The London-based boutique investment manager will seek capital from investors in North America, Europe and Asia.

Keyhaven Secondaries Fund II was registered in the UK in April and has attracted one US-based investor so far, according to a 16 December filing with the US Securities and Exchange Commission.

Keyhaven’s first dedicated secondaries fund is a 2012-vintage vehicle that closed on €200 million. The fund is fully committed, according to the source. Limited partners who committed to that fund included Swedish national pension AP Fonden 4 and the LA84 Foundation, a Los Angeles-based endowment, according to PEI’s Research and Analytics division.

The firm also has four funds of funds, the most recent of which is Keyhaven Capital Partners IV, which was registered at the UK’s Companies House in January. The commingled vehicle will not make secondaries investments, instead investing half of its committed capital into primary funds and the remaining half into equity co-investments, all in the small-cap and lower mid-market space, according to the source.

Keyhaven declined to comment.

Keyhaven makes primary, secondaries, direct and co-investments in European small-cap firms with enterprise values less than €100 million, according to its website. Founded in 2003, the firm has committed or advised on investments in excess of €1.6 billion.