Exclusive: Newbury nears $1bn hard-cap for Fund III

The firm is expected to close its third secondaries fund during the first quarter. 

Newbury Partners has raised about $935 million for its third secondaries fund, according to a source familiar with the matter. Fund III has a $1 billion target and hard-cap.

Newbury Partners declined to comment. 

The firm launched Fund III during the summer of 2013 and has invested less than 5 percent of the capital to date. Newbury is expected to wrap up fundraising during the first quarter of the year, the source said, and has attracted the vast majority of committed capital from existing investors. MVision is acting as placement agent for the fund. 

Fund III will invest using the same strategy as Newbury’s second fund, buying small to mid-sized stakes in funds, most below $50 million. Newbury’s Fund II collected $1.02 billion, surpassing its $800 million target, in 2010. Fund II has more than 75 institutional investors from the Americas, Europe, Asia and Australia, and is roughly 95 percent invested. 

Last November, Newbury hired Stéphane Chevrier as a managing director responsible for origination, execution and monitoring of private equity investments. Chevrier was previously a managing partner of Equifin Alternative Investments, a private equity management firm for primary and secondary transactions.

Stamford, Connecticut-based Newbury is led by managing partner Richard Lichter and manages more than $1.7 billion of capital commitments