GLOBAL - Baring Asset Management has linked-up with private equity firm Coller Capital to launch its first private equity secondaries fund, targeting high net worth individuals and small-sized institutions in the UK, Switzerland, and the Far East.
The Baring-Coller Secondaries Fund will invest in Coller’s fourth fund, Coller International Partners IV. The fund invests globally in private equity partnerships and direct investments, and is managed in London.
The minimum investment for the secondaries fund is US$100,000, compared to CIP IV’s US$10m. The target for CIP IV is USS$20m.
Melanie Weatherspoon, Baring Asset Management’s Product Specialist, Private Clients said that the fund was created to cater for greater demand for alternative investments.
The fund has a simplified draw down structure, in two tranches of 50% each, and closes mid September 2002.
Private equity fund secondaries have been driven by two main factors - growth of the primary private equity fund market which has seen over US$1trn committed to it since 1990, as well as the current bear market, said BAM. The firm estimates between 0.5% and 3.0% of primary investments - or US$5-30bn - are offered for sale through the secondary market per year.
Barings - part of Dutch ING Group - was the original sponsor of Coller’s first fund back in 1990.
By Madhu Kalia
This week's edition of Professional Pensions is out now.
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