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Portfolio Advisors passes target on latest PE secondaries fund

Portfolio Advisors Secondary Fund IV, which targets US mid-market buyout funds, has received a $150m investment from PSERS.

Portfolio Advisors has exceeded the target of its flagship secondaries fund as it prepares to launch a vehicle dedicated to GP-led deals.

The Darien, Connecticut-headquartered investment manager has raised $1.7 billion for Portfolio Advisors Secondary Fund IV from 209 investors, according to filings with the US Securities and Exchange Commission. Secondaries Investor reported in November 2019 that the firm was coming back to market targeting $1.5 billion for PASF IV, which has a hard-cap of $2.25 billion.

The fund held a first close in April on $728 million. PASF IV will primarily target US mid-market buyout funds, with 25 percent allocated to growth and venture capital, 10 percent to distressed and special situations, and 10 percent to opportunistic investments.

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

Hugh Perloff leads Portfolio Advisors’ secondaries investment team.

In November, Secondaries Investor reported that Portfolio Advisors was to launch a fund dedicated to GP-led restructurings. Managing directors Stephen Sloan and Brian Mooney, along with vice-president Michael Song, joined from advisor Greenhill to help manage the rollout.

The PASF fund family can invest up to 20 percent in GP-led process, managing director Brian Murphy told Secondaries Investor in November.

“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.

Portfolio Advisors declined to comment.