Newbury Partners has closed its second fund focused on secondary investments on just over $1 billion, beating its original target of $800 million.
Credit Suisse worked as placement agent for the fund.
Newbury, which spun out of Auda International in 2006, raised its first fund in 2008, collecting $702 million.
The firm, led by Richard Lichter, Chris Jaroch, Justin Pollack and Gerry Esposito, generally buys small to mid-sized stakes in funds, most below $50 million. The average deal size in the firm’s first fund was slightly under $10 million, Pollack told PEO.
The firm was able to add some new limited partners to Fund II, though Pollack declined to name specific LPs. Fund II has more than 75 institutional investors from the Americas, Europe, Asia and Australia.
Buyers in the secondaries market need to be careful because volume is up “significantly” from last year, but pricing also has increased, Pollack said.
“We think this is really the kind of market where sourcing is really the key,” Pollack said.