Morningside Capital Management is back in market with its second fund focusing on single-asset deals, Secondaries Investor has learned.
The Toronto-headquartered niche firm held a first close on Morningside Vintage Secondaries Funds 2023 this month, according to a source familiar with the fundraise. The fund, which launched in January, is understood to be seeking 25 percent to 50 percent more than its predecessor vehicle, which was sub-$100 million in final size.
MVSF 2023 already has line of sight into three transactions and focuses on partnering with top-quartile managers, according to the source.
The firm’s first vehicle completed nine single-asset transactions, it is understood.
The firm expects to offer co-investment opportunities on top of the fund, as it did with its debut vehicle, Secondaries Investor understands.
Single-asset deals accounted for 44 percent of GP-led transactions by capital last year, according to data from investment bank William Blair.
Deals that Morningside has previously backed include a preferred equity investment in a €100 million European private equity portfolio managed by Springwater Capital last year. In that deal – in which New York-headquartered LSV Advisors also participated – Springwater wanted to use the capital to invest in opportunities brought about by market dislocation.
Morningside was founded in 2013 by Henry Zhang, a founding member of CPP Investments’ private equity secondaries programme. The firm has two other partners: Tori Buffery and George Weekes, who both also previously worked at the Canadian pension giant.
Morningside declined to comment on fundraising.