Performance Watch: Whitehorse Liquidity Partners

The preferred equity specialist is on track to nearly double its AUM with the latest flagship vehicle.

Toronto-based preferred equity specialist Whitehorse Liquidity Partners appears to be on a fundraising tear.

Since 2016, the firm has raised more than $7 billion between its first four flagship funds, with the most recent closing in April. Just four months later, the firm has returned to market with its fifth programme, targeting $5 billion, according to documents obtained by Secondaries Investor from the Minnesota State Board of Investment.

Whitehorse intends to construct a portfolio for the fund of between 15-20 structures generally ranging from $100 million to $500 million, according to the memo.

The fund seeks a gross return target of 12-14 percent, while maintaining exposure to the upside that could boost gross return into the high teens.

Minnesota SBI has proposed a $100 million commitment to the fund, in line with its commitments to the previous two vehicles.

Investors in the most recent flagship include Alaska Permanent Fund, Oregon State Treasury, Maryland State Retirement and Pension System and Virginia Retirement System, according to Secondaries Investor data.

Despite mainly competing against secondaries buyers, Whitehorse targets private equity-like returns with credit-like characteristics, the memo notes. The firm believes that sharing upside with prospective sellers of LP interests is more attractive to the seller than a complete sale.

A spokesman for Whitehorse declined to comment.