Portfolio Advisors holds $1.7bn interim close

Portfolio Advisors Secondary Fund IV has a hard-cap of $2.25bn and is being raised alongside a dedicated GP-led secondaries vehicle.

Portfolio Advisors is edging closer to the final close on its fourth flagship private equity secondaries fund.

The Darien, Connecticut-based alternatives manager has raised $1.7 billion for Portfolio Advisors Secondary Fund IV, according to two filings with the US Securities and Exchange Commission. The fund launched in 2019 and passed its $1.5 billion target in January, as Secondaries Investor reported.

Limited partners include Pennsylvania Public School Employees’ Retirement System, which committed $150 million, and Missouri Local Government Employees’ Retirement System, which committed $65 million, according to Secondaries Investor data.

PASF IV has a hard-cap of $2.25 billion and will primarily target US mid-market buyout funds. It can invest up to 20 percent in GP-led processes, managing director Brian Murphy told Secondaries Investor in November, which led the firm to launch a fund dedicated to GP-led deals.

“We didn’t want to change the fund’s strategy [by increasing that allocation]. Launching an independent GP restructuring fund will then allow our clients that are very interested in that space to adjust their exposure to any level they would like,” Murphy said.

Former Greenhill managing directors Stephen Sloan and Brian Mooney joined the firm to help lead the fund. The fundraising status of that strategy is unclear.

Last month, Portfolio Advisors backed a single-asset process on Clearlake Capital portfolio company Wheel Pros alongside ICG Strategic Equity, Strategic Partners, Pantheon and Whitehorse Liquidity Partners, according to a statement.

Hugh Perloff leads the firm’s secondaries investment team.

The 10 secondaries funds to hold final close during the first quarter of this year raised a combined $18.07 billion, according to Secondaries Investor data. The figure, which is down on last year’s $24.27 billion peak, is still the third highest first quarter total after the $19.74 billion raised in 2017.

Portfolio Advisors declined to comment.