Seligman plans second close in H1 2015 – exclusive

Seligman European Secondaries Opportunities II held a first close last month on about €24m and could make an investment before year-end.

Seligman Private Equity Select, which was spun out from Edmond de Rothschild in 2011, is planning to hold a second close for its sophomore secondaries fund in the first half of 2015, Secondaries Investor has learned.

European Secondaries Opportunities II held its first close at the end of last month, raising €24 million towards its €75 million target. The fund launched earlier this year and has a €125 million hard-cap.

Fund II hasn’t made any investments to date but may close a deal before year-end, a Seligman spokesperson told Secondaries Investor.

The fund is expected to invest proportionally between traditional secondaries and direct secondaries, although no set allocation has been made.

Investments will focus on small companies in Western Europe. Although the firm is not targeting particular industries, it will not invest in infrastructure, real estate, secondaries mezzanine, or external commodities such as oil and gas.

Seligman’s debut secondaries fund – European Secondaries Opportunities I – raised $50 million in 2010, according to PEI’s Research and Analytics division. Over 90 percent of Fund I has been invested, according to the spokesperson.

Fund I invested equally in traditional secondaries and direct secondaries deals, including the restructuring of Octopus Investments’ Titan VCTs 1-3 fund, according to Octopus’ website.

Seligman teamed with Deutsche Asset & Wealth Management’s private equity platform to complete the restructuring in July 2013. The pair created a new venture capital fund that enabled Titan VCT investors to continue receiving distributions from the portfolio’s investments.

Seligman is headquartered in London and is led by David Seligman, who previously managed the Edmond de Rothschild private equity arm and spent 25 years at UBS, when it was known as SG Warburg, according to Seligman’s website.