Kline Hill to double deal team in preparation for new fund

The Connecticut-based firm is returning to the market with its second fund, targeting $300m.

Kline Hill Partners, the small- and mid-sized secondaries specialist, is looking to double the size of its deal team in preparation for the launch of a new fund, Secondaries Investor has learned.

At present the team consists of six investment professionals led by managing partner Mike Bego and partner Jared Barlow, according to the firm’s website. Interviews are under way, with new starters set to take up their roles when the fund comes to market next month.

Kline Hill is returning to market with Kline Hill Partners Fund II, which will target $300 million with a hard-cap of $350 million – a considerable step up from its debut offering. The firm aims to achieve first close around the end of 2017 with first investments coming in early 2018, Secondaries Investor understands.

Debut vehicle Kline Hill Partners Fund I closed on $183 million in January 2017 after 15 months of fundraising, Secondaries Investor reported at the time. The fund is around 75 percent invested.

Kline Hill has been an active co-investor from its debut fund, alongside other secondaries firms and limited partners.

In May it partnered with secondaries firm Newbury Partners to buy stakes in Akina Partners’ Euro Choice III and Euro Choice IV funds of funds, as Secondaries Investor reported. The amount put towards co-investments from its debut fund was almost as much as that which went towards conventional secondaries deals, according to source familiar with the fund.

Fund II has no specific allocation for co-investments but will execute as and when they arise, according to the same source.

Kline Hill declined to comment.