57 Stars seeks over $1bn in double fundraise – exclusive

The emerging markets-focused fund of funds is seeking around $100m for its debut impact vehicle.

57 Stars will return to market as early as next month with its fifth global fund targeting around $1 billion, Private Equity International has learned.

The Washington DC-based fund of funds manager has already closed on about $600 million in re-ups from existing investors, according to a source with knowledge of the fundraising.

Along with 57 Stars Global Opportunity Fund 5, which will back mid-market and emerging markets-focused GPs, the firm is raising capital for its debut impact fund, 57 Stars Direct Impact Fund, targeting around $100 million, the source added. The vehicle will have five primary themes – healthcare, financial inclusion, clean energy and resource efficiency, affordable housing, and education – across geographies 57 Stars invests in, PEI understands.

57 Stars declined to comment on fundraising.

City of Knoxville Pension Board and Kansas Health Foundation are investors in Fund 4, and Austin Fire Fighters Relief and Retirement Fund, City of San Jose Police & Fire Department Retirement Plan and Guardian Life Insurance Company of America are investors in Fund 3, according to PEI data.

57 Stars has backed funds managed by Actis, Samara Capital and SB China Capital, PEI data show. The firm usually commits between $15 million and $50 million per fund and typically co-invests between $10 million and $20 million alongside its GPs.

Fund 4, a 2015-vintage vehicle that closed on about $1 billion, is more than 80 percent committed, the source noted.

57 Stars’ portfolio is about 50 percent allocated to Asia-Pacific, of which the biggest exposure is in China and India, about 20 percent in Latin America and about 5 to 10 percent each in Africa, Middle East, Central Europe and Russia, PEI understands.

The firm has more than $3.5 billion in assets under management in a combination of separate accounts and commingled funds, according to the firm’s website. Four of its six managing directors have a development finance background, having previously worked at the Overseas Private Investment Corporation.