Performance Watch: Hollyport Capital

As Hollyport seeks $750m for its latest flagship fund, we look at the terms of the fund and the niche secondaries specialist's performance so far.

Hollyport Capital raised £6 million ($7.2 million; €6.5 million) for its debut fund, which held its final close in 2007.

As of mid-August the London-headquartered firm was in market with Hollyport Secondary Opportunities Fund VII, targeting $750 million with a hard-cap of $1 billion.

Fund VII has a management fee of 1.5 percent, a preferred return of 7 percent and a carry of 15 percent, or 20 percent if the fund returns more than 2x, according to documents prepared for the 23 July Board of Trustees meeting of the Utah School & Institutional Trust Funds Office. It is expected to hit its final close in September, the documents noted.

Hollyport’s funds focus on acquiring small, mature stakes in the form of single lines, portfolios of LP stakes or end-of-life restructurings. The firm has spent some of its raised capital buying a portfolio tail-end stakes from Pantheon and backing the restructuring of 1998-vintage buyout fund Fenway Partners Capital Fund II, as reported by Secondaries Investor.

The interactive chart below shows the firm’s private equity fund history, based on its results as of 31 December 2018. Toggle between the tabs to see how the funds have fared by internal rate of return and multiple of invested capital. The bubbles are sized proportionately to the size of the fund; hover over them to see fund data.

Returns data for Fund VI are not yet available. The fund is 60 percent called, according to the documents.

Hollyport declined to comment.