Portfolio Advisors raises $1.2bn customisable FoF

LPs can customise their allocations in the vehicle across strategies including as much as 20% to secondaries.

Portfolio Advisors has held the final close on a customisable fund of funds vehicle that will allow limited partners to choose their strategy exposure.

Portfolio Advisors Private Equity Fund IX raised $1.18 billion against a target of $900 million from pension funds, endowments, insurance companies, family offices and high-net-worth individuals, according to a statement from the firm.

LPs in PAPEF IX can customise their exposure to buyout, venture capital, secondaries, co-investments, special situations and mezzanine strategies, the statement noted. Investors can also alter their exposures based on Portfolio Advisors’ analysis of current market conditions.

Secondaries allocations can be as high as 20 percent, Secondaries Investor understands.

The Darien, Connecticut-based firm launched PAPEF IX in January 2016 and hit an interim close on $290.5 million in August 2016, Secondaries Investor reported.

Investors in the fund include Louisiana State Police Retirement System, according to minutes from the US pension’s 28 September 2016 investment committee meeting.

Predecessor PAPEF VIII hit final close on $1.22 billion, above its target of $900 million, in April 2016, according to PEI data. It has the same customisable strategy as PAPEF IX.

In January Portfolio Advisors hit the $1.5 billion hard-cap on its third dedicated secondaries fund after more than two years in the market. Around one-quarter of Portfolio Advisors Secondary Fund III will focus on venture and growth strategies, 10 percent on distressed or special situations and another 10 percent on “opportunistic strategies based on market dynamics”.

Fund III aims to generate an internal rate of return of 15-20 percent over the life of the vehicle by purchasing investments at a discount to face value, according to minutes from the January 2017 investment committee meeting of Florida-based Munroe Regional Health System.