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Schroders unit nears target with first close

The London-based manager's fourth fund is the second big first close by a secondaries buyer this week.

Schroder Capital has secured 73 percent of its target for the latest flagship secondaries fund.

The London-based manager has raised $293.32 million for Schroders Capital Private Equity Secondaries IV, according to a filing with the Securities and Exchange Commission dated 22 February.

The fund is targeting $400 million and has been in market since December, Secondaries Investor understands. The hard-cap was not disclosed.

Already, the firm has surpassed the last fund, 2016-vintage Adveq Secondaries III, which raised $270.91 million over a $200 million target. Schroders completed its acquisition of Adveq in 2017.

Like the previous funds in the series, the fourth programme will focus on global secondaries, particularly lower-middle market GP-led transactions, according to a spokesman for the firm.

The third fund sported limited partners the likes of PKDW, Stanlib and several German insurance firms, according to Secondaries Investor data.

Christiaan van der Kam, head of secondaries at Schroder, spoke with Secondaries Investor in May about the the ability of GP-led deals to facilitate “discussions with the sponsor throughout the life of the process and ideally even before the process has begun.”

This is the second first close this week for a secondaries buyer in which most of the capital was closed up-front. Kline Hill Partners closed more than 90 percent of the $1 billion it is seeking for its fourth core fund, overage fund and inaugural GP-led fund.

Founded in 1997, Schroders Capital invests in all private equity strategies, including venture capital, growth capital, buyout and turnarounds through primaries, secondaries and direct-/co-investments, according to its LinkedIn page.