Major secondaries firms’ fundraise updates and expected closes revealed

Details of 21 secondaries funds, including those by AlpInvest Partners, BlackRock and Coller Capital, have been disclosed in documents prepared for a US pension.

A treasure trove of information about the details and capital-raising progress of major secondaries funds including those managed by AlpInvest Partners, BlackRock, Coller Capital, HarbourVest Partners, Neuberger Berman and Partners Group have been disclosed in documents prepared for a US pension.

MWRA Employees’ Retirement System, which manages around $690 million for Water Resources Authority retirees in the state of Massachusetts, engaged NEPC to find a private equity secondaries manager of closed-end funds.

A total of 21 firms responded to NEPC’s search – details of which were included in the pension’s 30 May board meeting.

Preference was given to candidates that had raised at least one prior fund for MWRA’s proposed strategy and the final close date of the funds had to be no sooner than August 2024. Funds must also have been seeking more than $200 million.

HarbourVest’s Dover Street XI fund, the largest of all on MWRA’s list, is targeting $12 billion and eyeing a final close in August. The vehicle has raised $11.86 billion to-date, the document shows, which notes that HarbourVest had until 10 May to submit its information to NEPC.

Capital Dynamics’ GSCE VI fund is also close to hitting its $850 million target and has raised at least $796 million, according to MWRA’s document.

There was a record amount of dry powder for secondaries at the beginning of this year, with $166 billion in unspent capital, including the next 12 months’ fundraising estimates, according to data from Evercore released in January.

Last year saw more capital raised for secondaries strategies than any other year in the subsector’s history, with $117.92 billion collected in final closes across all asset classes. That figure is more than double the prior year’s $53.28 billion and almost 17 percent higher than the previous record set in 2020 when $101.14 billion was raised.

Separate spokespeople for BlackRock, Capital Dynamics, Carlyle, Coller, GCM Grosvenor, HarbourVest, Neuberger Berman, Partners Group and Portfolio Advisors either did not comment or declined to comment. Spokespeople for HQ Capital and Newbury did not return requests for comment by press time.