Portfolio Advisors has raised the management fee on its latest dedicated secondaries fund, according to documents from the El Paso City Employees’ Pension Fund.
The Darien, Connecticut-based fund of funds manager increased its management fee to 1.25 percent from 1 percent, minutes from the Texas pension’s 15 June board meeting show. It is understood the fund has raised $400 million of its $1 billion target.
The firm only charges fees on called capital, and El Paso would receive a further discount equivalent to a 1.125 percent management fee if subscription documents for the fund were submitted by 30 June.
El Paso re-upped in the firm’s secondaries strategy with a $15 million commitment to Portfolio Advisors Secondary Fund III, according to the minutes, which state that Portfolio Advisors’ secondaries funds are generally in the first or second quartile.
PASF III launched last October, as Secondaries Investor reported. Missouri Local Government Employees’ Retirement System committed $75 million to the fund, according to PEI data.
Portfolio Advisors declined to comment.