The oversubscribed vehicle, which surpassed its initial $300 million target after 14 months on the road, will make primary commitments to fund managers exclusively focused on the micro-cap and lower mid-market opportunities. In specific, Aberdeen will seek out buyout funds sized between $100 million and $750 million that invest in companies with less than $250 million in enterprise value, with 15 to 20 percent of the fund reserved for co-investments and secondaries deals.
This focus continues the investment strategy of FLAG Capital Management, a private equity firm acquired by Aberdeen in 2015, as Fund VII will be managed by the former FLAG private equity team.
APE VII will charge a management fee of 75 basis points and carried interest of 5 percent, with a hurdle rate of 10 percent on called capital. The Grable Foundation is among the known limited partners in the fund.
FLAG Private Equity VI, the immediate predecessor in this series of vehicles, raised $295 million in 2015.