Newbury hits $700m first close – exclusive

Newbury Partners has held the first close on its latest secondaries fund, two months after launching, Secondaries Investor has learned.

The Connecticut-headquartered secondaries specialist has raised $700 million for Newbury Equity Partners IV, according to a source familiar with the fundraise.

The firm expects to hold the final close for the vehicle on $1.2 billion by the end of June. The fund’s hard-cap is $1.4 billion.

More than 50 percent of the investors so far are pension funds, with half of those coming from Europe. Large family offices also make up a considerable proportion of commitments, the source said.

Swedish national pension AP Fonden 3 is understood to be an investor.

Founded in 2006, Newbury Partners specialises in acquiring buyout, venture capital, special situations, mezzanine and funds of funds limited partnership interests in the secondaries market. It focuses on small and mid-market interests, targeting transactions up to $250 million in value with no minimum deal size.

The firm has around $2.8 billion in assets under management, according to PEI data. Its previous fund, the 2013-vintage Newbury Equity Partners III, closed on $1.1 billion, above its target of $1 billion.

In May, Newbury partnered with Kline Hill Partners to acquire stakes in Akina Partners’ Euro Choice III and Euro Choice IV funds of funds, Secondaries Investor reported at the time. The Euro Choice funds target mid- and lower market investments in Europe.

Newbury declined to comment.