Portfolio Advisors holds $2.6bn flagship final close

Portfolio Advisors has held a final close on its fourth flagship private equity secondaries fund, surpassing the previously reported hard cap.

The Darien, Connecticut-based alternatives manager has raised $2.6 billion as of 31 December for Portfolio Advisors Secondary Fund IV, according to a source with knowledge of the matter. That figure includes $100 million of GP commitment, Secondaries Investor understands.

The fund launched in 2019 and passed its $1.5 billion target in January, the publication reported. It then held a $1.7 billion interim close in May.

The original hard-cap was $2.25 billion, as Secondaries Investor reported in May, but since then the lead investors who requested the cap agreed to raise it to $2.5 billion, the publication understands.

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 data from the publication.

PASF IV will primarily target US mid-market buyout funds and 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.

In August, Secondaries Investor reported Briac Houtteville, Greenhill’s former co-head of European Capital Advisory, is to join Portfolio Advisors. He will become European head of secondaries and work alongside former colleagues Sloan, Mooney and Michael Song.

Hugh Perloff leads the firm’s secondaries investment team.

In April, 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.

In 2021, $63.8 billion was raised across 77 funds. This compares with $98.8 billion spanning 63 funds in 2020 and $32.7 billion across 44 funds in 2019.

Portfolio Advisors declined to comment.