News & Analysis

Landmark holds first close on latest PE secondaries fund

Landmark is targeting $6bn for the first flagship PE vehicle raised under the ownership of Ares Management, which acquired the secondaries firm in June.

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Landmark Partners has held a first close on its 17th private equity secondaries fund.

The Ares Management-owned firm has collected $799.35 million for Landmark Equity Partners XVII, according to filings with the US Securities and Exchange Commission. The fund came to market in July 2020, eight months before Ares’s $1.08 billion acquisition of the company.

MVision Private Equity Advisers and Monument Group are listed as placement agents, along with Santiago-headquartered Larrain Vial, Seoul-based Mirae Asset Daewoo and Taipei’s Capital Gateway Securities.

Landmark did not respond to a request for comment.

Landmark Private Equity XVII is targeting $6 billion, a 21 percent increase on the amount raised for its 2016-vintage predecessor. Limited partners participating in the first close include Cathay Life Insurance, which committed $90 million, according to Secondaries Investor data.

Landmark is aiming to raise “north of $10 billion” across its private equity, real estate and infrastructure funds, Secondaries Investor reported in the fourth quarter of last year. Speaking on a call after the acquisition in March, Ares chief executive Michael Arougheti said he expected Landmark to meet or exceed its target.

As part of the acquisition, Landmark’s 16 partners are participating in a management incentive plan under which they have to meet targets related to fundraising and revenue generation.

In May, Landmark held its first post-acquisition final close, raising $915 million for Landmark Infrastructure Partners II, Secondaries Investor reported. The firm is also in market with its ninth real estate fund, targeting $3.5 billion.

The largest secondaries players have been returning to market in recent months, after a period characterised by closes of smaller, more niche funds. Strategic Partners Fund IX came to market in April targeting $13.5 billion. It expects to raise $20 billion.

Lexington Partners is in market with its 10th flagship secondaries fund, targeting $15 billion. The firm was acquired this week by financial services holding company Franklin Templeton in a $1.75 billion deal.