Portfolio Advisors targets $1bn for third fund – exclusive

The firm has raised $200m so far for its new dedicated secondaries fund.

Portfolio Advisors is aiming to raise $1 billion for its new dedicated secondaries fund, Portfolio Advisors Secondary Fund III, according to a source familiar with the matter.

The Connecticut-based firm has raised $200 million so far, according to a form D regulatory document filed with the Securities and Exchange Commission on Monday.

The source noted that the target for Portfolio Advisors’ third dedicated secondaries fund is the same as its two predecessors.

Portfolio Advisors Secondary Fund II closed in January 2014 on $910 million, according to a press release from the firm.

Limited partners in that fund include Alfred University and the Helis Foundation, according to PEI Media’s Research and Analytics division, as well as private and public pension plans, university endowments, private foundations, insurance companies, family offices and high net worth individuals. Some 80 percent of commitments to the fund came from existing Portfolio Advisors’ investors. That fund started investing in the third quarter of 2012.

The firm’s first dedicated private equity secondaries fund closed in 2009 on $1.1 billion. Investors in that fund included the Montana Board of Investments, the San Francisco Employees’ Retirement System and the Coleman Foundation, according to PEI Media’s Research and Analytics. Portfolio Advisors Secondary Fund had a net internal rate of return of 16.98 percent as of the fourth quarter of 2014.

Portfolio Advisors declined to comment on the fundraising.