Coller Capital Seeks $5.5 Billion to Buy Secondary StakesSabrina Willmer
Coller Capital Ltd., the London-based firm that buys private-equity assets on the secondary market, plans to seek $5.5 billion for its next fund, according to an excerpt from a marketing document obtained by Bloomberg News.
The firm’s seventh fund is expected to be similar in size to the $5.5 billion pool raised in 2012. As with the prior fund, the firm led by Jeremy Coller is offering investors the option of paying a lower management fee and giving it a larger cut of the profit, known as carried interest, or vice versa, according to the document.
Coller Capital joins firms seeking $17.4 billion to purchase private-equity stakes from their original investors in transactions known as secondary deals, according to data from London-based research firm Preqin. Lexington Partners Inc. is seeking as much as $10 billion, and Ardian, the firm formerly known as Axa Private Equity, raised $9 billion this year. The companies are competing for deals in a market where prices have reached the highest levels since the 2008 financial crisis.
Jade Neal, a spokeswoman for Coller Capital at MHP Communications, declined to comment.
Coller Capital is giving investors the choice of paying a 1.5 percent management fee and 10 percent carried interest, or a 0.85 percent management fee and 20 percent share of profits, according to the document.
Coller Capital and Goldman Sachs Group Inc.’s asset-management unit were final bidders for an almost $250 million stake in a growth fund run by the former private-equity unit of Citigroup Inc., said two people with knowledge of the matter in September. Last year, Credit Suisse Group AG received U.S. antitrust clearance to sell its stake in the DLJ Merchant Banking Partners buyout funds to Coller Capital.
Coller’s previous fund purchased stakes from sellers including a $1.9 billion private equity portfolio from Lloyds Banking Group Plc and $350 million of assets from Credit Agricole SA. The 2012 pool was producing a 1.4 times multiple as of June 30, and the 2006 fund was generating the same return, according to performance data from Oregon Public Employees Retirement Fund.