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Pomona collects $1.3bn for seventh secondaries fund

The New York- and London-based firm spent about a year fundraising for a vehicle that ended up ‘substantially oversubscribed’.

Pomona Capital has closed its seventh secondaries fund on $1.3 billion, 30 percent above its original target of $1 billion.

The seventh fund was “substantially oversubscribed despite the challenging economic environment”, the firm said in a statement.

Pomona Capital VII, which was in fundraising for about a year, will focus on buyout and venture capital funds, as well as portfolios of private equity-backed companies from “investors who desire liquidity”, the firm said.

Pomona’s sixth fund closed on $821 million in 2005, $221 million over its original target.

The firm, which is led by chief executive officer Michael Granoff, attracted some new investors to the fund, including US public pensions, financial institutions, endowments and Taft-Hartley plans. A spokesperson for the firm declined to name specific LPs. Investors in past Pomona funds include the State of Wisconsin Investment Board, the University of Texas Investment Management Company, Miami University of Ohio, West Midlands Pension Fund and the University of Washington. Senior partner Fran Janis leads investment decision-making and the secondaries, primary funds and co-investment businesses.

Credit Suisse served as placement agent for Fund VII.

“Today’s macroeconomics and private equity environments are combining to create what may be an unprecedented opportunity in the secondaries market,” the firm said in a statement. “Deal flow, asset choice and pricing power have increased substantially as limited partners of all types seek liquidity. At the same time, economic conditions make understanding the real value of private equity backed companies as challenging as ever.”

The firm, founded in 1994, manages about $6 billion across a series of secondaries funds, primary funds of funds and co-investment funds for a group of 190 investors. Pomona owns partnership interests in more than 500 private equity funds with investments in more than 4,000 companies.

Pomona has offices in New York and London.