Top Tier to hold first close on Velocity Fund II

The firm has raised around 90% of the target for its latest fund focusing on VC fund and direct secondaries, documents from a US pension show.

Top Tier Capital Partners, a niche fund of funds manager, expects to hold the first close on its sophomore dedicated secondaries vehicle by the end of March, documents from a US pension show.

The San Francisco-headquartered firm has raised around $225 million in commitments for Top Tier Venture Velocity Fund II, minutes from the New Hampshire Retirement System’s 24 February independent investment committee meeting show.

The firm is seeking as much as $250 million for Fund II which will invest in venture capital fund secondaries, direct secondaries and co-investments, as Secondaries Investor reported in early March.

Top Tier will invest around 70 percent of Fund II into secondaries and these investments will return cost within as early as two years, according to the minutes which cite Garth Timoll, a managing director at the firm.

The firm has a proprietary database that it uses to source and price investment opportunities, Timoll said, adding that Top Tier will adhere to its investment thesis and can be selective on deals due to increased dealflow in the market.

Fund II has a seven-year term structure with three one-year extensions and will follow its 2014-vintage predecessor by providing lower risk venture exposure with the same focus and targeted approach, according to the minutes. Top Tier Venture Velocity Fund, a $189.6 million vehicle, holds around 250 companies and around 50 are driving value, the minutes show.

NHRS approved a $25 million commitment to the fund. Iowa Municipal Fire & Police Retirement System also committed $50 million to Fund II.

Top Tier was formed in 2011 via a management-led buyout of Paul Capital’s fund of funds business, Paul Capital Investments. The firm has $5.2 billion in assets under management, according to PEI data. Its investors include public and private pensions, sovereign wealth funds, foundations, endowments and family offices, according to its website.