Landmark Partners is hoping to almost double the target of its previous private equity secondaries fund with the launch of its 16th vehicle in the series.
The Simsbury, Connecticut-headquartered firm is seeking $4 billion for Landmark Equity Partners XVI, according to the firm’s chairman and chief executive Francisco Borges, who presented at a New Mexico State Investment Council meeting on 25 October. The fund has a $4.7 billion hard-cap.
Fund XVI will invest globally with a focus on the US and Europe, the same strategy as its recent predecessors. Landmark prefers to invest in proprietary deals or what it calls “negotiated transactions” because it can achieve a smarter price, Borges said, adding: “For us, it’s better to identify a seller before they decide to be a seller.”
The investment council approved a $100 million commitment to the fund at the meeting. New Mexico had previously committed $100 million to the firm’s 2013-vintage Landmark Equity Partners XV and $20 million to the 2003-vintage Landmark Equity Partners XI.
In Landmark’s previous two funds, 73 percent of deals were sourced through its 13-person quantitative research group, said Andrea Ferzoco, an investor relations professional at the firm who also presented at the meeting. Fund restructurings accounted for 12 percent of deals across both funds as of 31 March.
Landmark Equity Partners XV closed on $3.3 billion in 2014, beating its $2.5 billion target after more than two years of fundraising, according to PEI data. The fund is about 90 percent invested and committed and had a 16.5 percent net internal rate of return as of 30 June, according to managing director Michael Carrano, also at the meeting. He added the average age of the funds in which the firm acquires stakes is 8.3 years.
Landmark’s five most recent funds have generated a 12 percent net IRR and a 1.3x return multiple, according to Allen Waldrop, managing director at advisory firm Pavilion Group.
New Mexico’s private equity portfolio contains two secondaries investments including a Coller Capital-managed fund, and these represent at most 5 percent, according to the video.
Landmark will commit 1 percent to the fund, Waldrop noted.
Landmark has committed $11 billion in private equity through over 325 deals; $4.1 billion in real estate through over 100 deals, and $450 million through eight deals, according to materials presented at the meeting.
Landmark declined to comment.