Specialist secondaries investor Hollyport Capital has announced the first close of its third fund, Hollyport Secondary Opportunities III. The firm began fundraising in February.
Like its predecessors, the fund will invest in small parcels of mature and orphaned private equity fund interests. It will be capped at £30m (€35m)
The firm says a substantial majority of the investors in Hollyport’s two previous funds have committed to the new one. The first fund, raised in 2007, has made six distributions, while the second, dating from 2008, is now fully invested. As of June 2010, it was valued at 1.5 times cost, and has made three cash distributions to investors.
Hollyport, which is based in London, says secondary investments, in which a firm buys a portfolio of interests or a stake in a fund from an existing investor, offer superior liquidity compared to conventional private equity commitments.
The firm also tries to minimise risk by diversifying its investments in terms of fund type, manager and geography.
It was formed as part of private equity advisory business Newgate CSP in 2006, but spun off from the group in June 2009, assuming the name Hollyport Capital and focusing on the secondaries market.
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