New 2ND Capital raises over half a billion for sophomore vehicle

GP-led specialist New 2ND Capital has wrapped up fundraising on its second fund.

The New York-headquartered firm raised $572.08 million for New 2ND Capital Fund II through one onshore- and one offshore vehicle, according to two filings with the US Securities and Exchange Commission. This represents a final close, a spokesman confirmed.

Fund II came to market in January last year, according to Secondaries Investor data. The identities of its limited partners are not clear.

New 2ND was founded in 2016 by former AlpInvest Partners managing director Tjarko Hektor. The firm focuses on GP-led transactions in the North American small- and mid-market, including spin-outs, restructurings, direct secondaries and the acquisition of co-investment portfolios.

Its debut fund raised $294 million by final close in March 2019, against a target of $250 million. Among the deals the firm has backed are the $134 million multi-asset restructuring of Vicente Capital Growth Equity Fund, a 2008-vintage fund.

Alongside Hektor, the firm’s partners are former AlpInvest managing directors Jordan Bradley and Clay Cole, and former head of secondaries and co-investments at Top Tier Capital Partners Dan Townsend.

The 10 secondaries funds to hold final close during the first quarter of this year raised a combined $18.07 billion, Secondaries Investor reported. The figure, which is down on last year’s $24.27 billion peak, is still the third highest first-quarter total after the $19.74 billion raised in 2017.

Several small and niche secondaries funds closed during the first quarter, including Revelation Partners’ third healthcare secondaries fund, Industry Ventures’ ninth venture capital fund and Capital Dynamics’ fifth secondaries fund focused on “off-market opportunities”, as Secondaries Investor has reported.