Exclusive: Aberdeen SVG holds $110m first close

The fund of funds – and a separate Carlyle feeder fund – will be the first vehicles raised since Aberdeen SVG Private Equity came into being

London-based Aberdeen SVG Private Equity has held a $110 million first close on its latest fund of funds, PEI has learnt.

Aberdeen SVG, which started to speak to investors about the fund of funds vehicle in August 2012, is looking to raise $250 million, according to a source familiar with the matter. It is expected to announce the close this week.

Aberdeen SVG declined to comment.

The vehicle has so far attracted a “diversified investor base” with most of the capital coming from existing investors, including European and UK local authority pension funds, high net worth individuals and family offices, according to the source.

The commingled fund, which has a global remit, will have an investment period of three years. It will invest in 10 to 15 primary private equity buyout funds, has the ability to make a 10 percent allocation to venture, debt or special situation funds, and can also invest in secondary private equity interests.

It is likely to hold a final close in June 2015, the source added.

As well as raising a fund of funds, Aberdeen SVG has also closed a single manager feeder vehicle with The Carlyle Group, the source said.

Aldwych Capital Partners (ACP) will invest in a number of private equity funds managed by Carlyle. ACP raised €120 million from investors to purchase interests in two existing, fully invested, Carlyle funds and will also invest €150 million in a new Carlyle buyout fund, providing investors with immediate exposure to Carlyle deals. As part of structuring the vehicle, Aberdeen SVG has also arranged a five year €35 million committed bank facility.

The two vehicles will be the first funds raised since the creation of Aberdeen SVG Private Equity in May 2013. London-listed SVG Capital agreed to sell a 50.1 percent stake of subsidiary SVG Advisers (SVGA) to Aberdeen Asset Management for £17.5 million (€20.4 million, $27 million), PEI reported at the time.

SVG wanted to team up with another asset management business “with a significant distribution platform”, as the fundraising market for private equity continues to be challenging, Andrew Sykes, SVG chairman said at the time. The partnership would “enable SVG Advisers to grow its investment platform and enter new markets faster, at lower cost and with more diversification than it could currently achieve on its own”, he said last year.

Following the first close of the fund of funds vehicle and the Carlyle feeder fund, Aberdeen SVG will have approximately €5.7 billion funds under management.