Hong Kong-based fund of funds Asia Alternatives has raised about $270 million towards its latest fundraising efforts, according to documents filed with the US Securities and Exchange Commission.
The firm has raised $215 million for its main vehicle, Asia Alternatives Capital Partners IV, with a further $55 million going towards two other related entities, one being a China vehicle, a source close to the matter confirmed to Private Equity International.
The firm is targeting $750 million across the funds and expects a final close before the end of 2014, the source said.
Asia Alternatives declined to comment on the fundraising.
The firm, which invests in private equity funds across Asia Pacific, currently has three funds of funds under management, the latest being a $908 million vehicle it closed in July 2012, according to the firm.
Asia Alternatives also secured a separate account with Pennsylvania State Employees’ Retirement System last year, to which the US pension plan has committed $83 million, media reported earlier.
Funds of funds are increasingly being forced to create separate accounts with institutional investors as the industry scrutinises the double layer of fees paid in the funds of funds model.
Moreover, funds of funds are being forced to reevaluate their models as fundraising has become tougher. In 2013 43 funds of funds raised a total of $9.9 billion, according to data compiled by PEI’s Research & Analytics division, just a quarter of the $39 billion raised in 2008 by 106 funds.