Terms of Landmark Partners‘ most recently closed private equity secondaries fund were disclosed in a document presented to limited partner University of Maine System.
Landmark Equity Partners XV has a 1 percent management fee and a 10 percent carried interest. The carry only applies to secondaries investments, which represent the majority of investments from that fund. The preferred return is 8 percent, according to the document by consultant NEPC for the endowment’s March meeting.
Management fees break down as: 1 percent of an LP’s commited capital for the first four years of the fund; 1 percent of the aggregate amount of an LP’s capital contributions plus amount subject to call for fund obligations for the following four years of the fund; and 1 percent of LP’s investment percentage of the reported value of the fund’s investments for the remaining of the fund’s life.
The document also noted that the fund is targeting to deliver a 1.6x to 1.8x net multiple and a net internal rate of return between 15 percent and 20 percent.
The University of Maine system committed $5 million to the fund in 2014.
Landmark Equity Partners XV closed on $3.25 billion in January 2015, above its $2.5 billion target and above Landmark Equity Partners XIV, which closed on $2 billion in 2010. It targets secondaries transactions in venture capital, growth equity and buyout funds.
As of 30 June, Landmark Equity Partners XV had a 14.9 percent net IRR, according to the NEPC document.
Landmark’s 15th fund is the university endowment’s only private equity commitment. The firm declined to comment.
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