Flossbach raises €75m for third fund of funds

The German firm has reached first close for its third private equity fund of funds.

German wealth manager Flossbach von Storch held the first close last month for its third private equity fund of funds on €75 million.

Tectrum Private Equity III will continue the investment strategy of its predecessor fund II and target primary and secondary transactions in small and mid-cap funds in Europe and the US.

The new vehicle will make commitments in 15 to 20 target funds, according to a statement from Flossbach.

The firm has set a minimum investment requirement of €1 million and will try to get more investors to join the fund in the next few months, with the final close expected at the end of the first quarter 2017.

The target was not disclosed.

The firm was founded in 1998 and currently manages assets of over €22 billion. It launched its first fund of funds in 2008. As of July 2015, the firm had allocated 15 percent of its total investments to private equity, according to PEI Research & Analytics.

Flossbach's private equity portfolio is fairly diverse, with commitments being made to buyout, venture capital, turnaround and growth/expansion capital funds.

Last year, the firm was a new investor in venture capital firm Point Nine Capital’s third fund, which targets early-stage SaaS [software as a service] and marketplace startups, and closed on €55 million in June.