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Top Tier to deploy two funds in VC secondaries deals

The Paul Capital spin-out is in market with its first dedicated venture capital secondaries and co-investment fund.

Venture capital specialist Top Tier Capital Partners will make future venture capital secondaries investments on a pro rata basis – deploying capital from its flagship fund and its debut Top Tier Venture Velocity Fund that is currently in market, Secondaries Investor has learned.

Top Tier makes primary and secondaries investments in venture capital funds as well as co-investments. Between 10 percent and 20 percent of Top Tier’s latest flagship fund, a $445 million vehicle, will be deployed in secondaries opportunities, according sources familiar with the matter.

Top Tier’s future investment strategy will also include its Top Tier Venture Velocity Fund — the firm’s first fund dedicated entirely to secondaries and co-investments. The fund is in market targeting $200 million, according to PEI’s Research and Analytics division.  It held a first close $102 million earlier this year.

Top Tier declined to comment but a source confirmed the firm’s future venture capital secondaries investments would be made using capital from both Top Tier Venture Velocity Fund and Fund VI.

Top Tier typically invests in single fund interests on the secondaries market and some of its deals can be as small as $1 million or $2 million. The San Francisco-based firm spun out of Paul Capital in 2011 and is led by chief executive officer David York and non-executive chairman Philip Paul, according to its website.