EUROPE/UK - Investment manager Schroders has launched a second private equity fund of funds targeting £250m.
The Dublin-domiciled Schroder Private Equity Fund of Funds II targets both European institutional and private. investors It offers three separate share classes with a minimum investment of E125,000.
Schroders said it will invest with established top tier private equity management groups primarily in Europe and the US (50/50), with another 10% outside these markets. Investments will be diversified by manager, geography, stage of development and vintage year.
Schroder aims to invest in approximately 15 to 20 individual private equity funds and has made a precommitment of E100m . Commitments have already been made to four funds totalling more than US$40m, including funds raised by Barclays Private Equity (E10m), Blackstone Capital Partners (US$10m), Charterhouse Capital Partners (E15m) and Lime Rock Partners II (US$8m).
Schroders said that it had seen a rise in interest in private equity recently as investors became increasingly acquainted with the asset class.
Andrew Sykes, head of alternative investments, said: This is a highly flexible private equity fund of funds product, which is designed to meet growing demand from a wide range of investors, following the successful launch of our first private equity fund of funds last year.
Fund of Funds II will be run by the same team as the first Schroder Private Equity Fund of Funds which closed one year ago. It opens next month and closes at the end of January 2004. It hopes to meet its target in 9 months time. Schroders is looking at launching a similar fund in the US aimed at institutional and high net worth investors, but which will invest in structured limited partnerships.
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