Pomona Capital, a global private equity firm, has closed its seventh secondaries fund, Pomona Capital VII, on $1.3bn, beating its original target of $1bn.
Pomona Capital VII, like its predecessor funds, will purchase interests in buy-out and venture capital funds, as well as portfolios of private equity-backed companies, from investors who are looking for liquidity.
“Over the years, Pomona has executed a differentiated middle-market value strategy in the secondaries business,” said Pomona CEO Michael Granoff. “Our approach resonates with investors who recognise the long-term attractiveness of private equity but are concerned about risk.”
Today’s macroeconomic and private equity environments are combining to create what may be an unprecedented opportunity in the secondaries market. Deal flow, asset choice and pricing power have increased substantially as limited partners of all types seek liquidity. At the same time, economic conditions make understanding the real value of private equity-backed companies as challenging as ever.
“Pomona’s focus on limiting risks, purchasing seasoned, diverse assets, and investing at a measured investment pace is well-suited to the current environment,” added Granoff.
Limited partners investing in the fund come from the US, Europe and Asia.
Founded in 1994, Pomona Capital manages around $6bn in past commitments across a series of secondaries funds, primary funds of funds and co-investment funds. Pomona owns partnership interests in over 500 funds diversified across the spectrum of private equity, with investments in over 4,000 companies. The firm operates from offices in New York, London and Hong Kong.
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