APEP FoF almost doubles target

The fund of funds arm of Germany’s Allianz Group has held a €750m third close of its debut vehicle, APEP Dachfonds & Co - with a final closing to come later this year.

Allianz Private Equity Partners (APEP), the fund of funds arm of German financial services group Allianz, has held a third closing of its debut APEP Dachfonds & Co fund of funds on €750 million ($906 million).
 
The vehicle, which held a second close on €400 million last August, is expected to make a final close later this year. Christian Mayert, managing director of APEP, told PEO that no hard cap has yet been officially announced for the vehicle. “We reached our original target of €400 million in our first close, so we revised it upwards,” he said. “Demand is certainly accelerating in line with the current overall appetite for private equity.”
 
Mayert said launching a dedicated fund of funds vehicle was a “natural process for our business” having previously invested from the balance sheet or special purpose vehicles. “We’ve always been a virtual fund of funds for the group,” he added. “Now we’re offering this to a larger community through a specifically-formed limited partnership.”
 
APEP Dachfonds & Co has received €185 million to date from within the Allianz Group. Mayert said that the bulk of the rest of commitments came from German institutional and private investors.
 
Mayert said investments from the new vehicle has already reached “double digits”, including three or four allocations to Asian private equity funds, although he declined to disclose any further information. The fund is expected to make 35 to 40 investments in total, said Mayert, but will not invest in private equity funds managed by Allianz Capital Partners, the private equity arm of Allianz Group.
 
APEP has structured the new vehicle to allow investors flexibility in the types of funds they can take positions in. “The fund has a compartmental structure so investors have three share classes to choose from,” said Mayert. “First there are European buyout funds only, then extra-European buyout funds, a large chunk of which will be in North America, but there is room for other areas such as Asia. Finally, there are exclusively global venture funds. Commitments for European buyouts are the largest currently.”
 
APEP, which is jointly managed by Wanching Ang in Munich and James Kester in New York, currently has approximately €4.3 billion under management.