$300m closing for Adveq’s IT-focussed FoF

The Swiss manager has closed below its $350m target for its third fund of funds aimed at US high tech funds.

Adveq Group, the Swiss-based fund of funds investor has announced the final closing of its latest fund, PETP III, which has raised $302m for investment in US high tech funds.

The $300m closing is some way short of its original target of $350m announced last summer. Adveq managing director Andre Jaeggi attributed the lower closing to a difficult fundraising environment in the light of the events of September 11.

The fund has received commitments from European, principally German-speaking, institutions. 90 per cent of the fund’s contributions have come from small to mid-sized insurance and pension funds, with the remainder coming from a diverse range of investors around the world. 

The fund will focus on making investments of between $10-12m in around 25 funds across the US. It will focus exclusively on high tech early-stage funds, a sector which Jaeggi believes is still very viable despite the recent loss of confidence by many investors in IT. “We think that it is possible to make consistent returns, even in a downturn, if investments are made continually and irrespective of the prevailing financial cycles.”

The firm has already made a number of commitments from PETP III, although Jaeggi declined to give any details about the investments made to date. “The current environment is ideal for making investments as valuations are down and there is less competition for the best companies.”

Adveq is an independent European private equity fund-of-fund manager with $1bn of assets under management, advising on over 100 fund investments worldwide.