Adveq launches US FoF programme

The Zurich-based fund of funds manager has held a first close on $130m of a new FoF dedicated to “special investment opportunities” in the US.

Swiss fund of funds investment manager Adveq has held a first close on $130 million (€103 million) of new, third programme dedicated to opportunities “outside the traditional private equity sectors”. The fund will invest exclusively in the US.

We had seen several great opportunities in the US that we wanted to invest in, but had no mandate. So, together with some of our professional, sophisticated core investors, we developed this product.

Peter Laib, managing director, Adveq

Private Equity Opportunities Partners (PEOP) has a final target of $150 million and the firm expects the fund to receive all its commitments from existing investors, according to managing director Peter Laib.

In an interview with PEO, Laib explained the strategy for the new fund: “[PEOP I] will invest in ‘non-traditional’ private equity funds and there will be no overlap with any of our existing programmes.”

According to Laib, there are three strands to the new fund’s strategy: firstly investing in managers of funds that have specific focuses or themes (e.g. media or energy); secondly anti-cyclical investment opportunities including distressed, restructuring and turnaround funds.

The third arm of the investment strategy Laib explained was to invest in: “funds which operate at the borderline to other asset classes and types of financing”. Laib said this strategy could include hedge funds that had small private equity funds in their portfolio or private equity funds that had some hedge fund characteristics, but not mainstream hedge funds.

On the reasons behind setting up the fund, Laib said: “We had seen several great opportunities in the US that we wanted to invest in, but had no mandate. So, together with some of our professional, sophisticated core investors, we developed this product.”

The fund has made two investments to date – one fund at the “asset class intersection” and the other, a private equity manager with a specific focus,

Peter Laib, managing director, Adveq

according to Laib.

“The fund is deliberately relatively small, so we can be highly selective,” commented Laib. “We’re not under pressure to put money to work – many funds in the portfolio will be small, exclusive funds that couldn’t take large commitments.”

Laib said the firm had no plans to open a US office for the time being. In the US, the firm closed its fourth technology fund, PETP IV, on $325 million ahead of a $300 million target in June last year.

Last month, Adveq began the fundraising for its third European fund of funds, PEEUP III, which has a target of €325 million.

Founded in 1997, the firm has $1.5 billion under management, employs 30 staff and advises on over 100 global fund investments.