Top Tier Capital Partners will dedicate up to one quarter of its first dedicated Europe-focused fund of funds toward secondaries and co-investments.
The San-Francisco-headquartered firm collected nearly €260 million in capital commitments for Top Tier European Venture Capital Fund in a final close, surpassing its €250 million target, according to a statement.
The fund, based in Luxembourg, is focused mostly on European funds, with some investments in Israel. Sectors include niche-focused venture funds and high-growth, expansion-stage technology start-ups, according to the statement.
The fund will invest between 20 and 25 percent in secondaries and co-investments, David York, managing director and founder of Top Tier, told Secondaries Investor. However, there is not a hard and fast rule, he added, and the fund will invest at the team’s discretion.
The existing dedicated secondaries and co-investment vehicle Top Tier Venture Velocity Fund III seeks global opportunities and has already invested a fair amount in Europe, according to York, who noted there are undercapitalised and underappreciated venture assets in that market.
The global and Europe funds will invest alongside each other, with the European fund receiving priority on European deals.
The same team evaluates opportunities for both funds, York said.
Last October the firm raised $300 million for Top Tier Venture Velocity Fund III, which invests through secondaries and co-investments, according to PEI data.
That brings the total haul to nearly $1.5 billion across the European fund, its secondaries- and co-investment-focused Velocity fund, Top Tier Venture Capital IX, and related SMAs, according to the statement.
Fully 28 percent of the underlying funds that traded in the secondaries market last year were in Europe, according to Campbell Lutyens‘ 2021 Secondaries Market Overview. Venture capital accounted for 7 percent of funds traded globally, up 2 percentage points from the year before.
Top Tier opened a London office in 2019 and has been investing in venture in the region since 2005, according to the statement.