ING Investment Management, part of the specialist investment network of ING, is preparing fundraising documentation for a new wholesale Australian private equity fund-of-funds.
Jon Schahinger, head of private equity at INGIM, told PEO that it aims to raise A$300 million for its fourth unlisted fund-of-funds product. The fund is expected to attract around ten institutional investors, a similar number to its third unlisted fund.
ING Private Equity Fund 4 will introduce a co-investment strategy to capture increasing opportunities in Australia. Private equity funds are increasingly keen to co-invest with their LPs for larger transactions rather than linking up with rival funds, Schahinger said.
Fund 3, which closed on A$134 million in 2005, is about 90 percent committed across nine funds. It will make another commitment within the next couple of months, Schahinger added.
ING raised its first private equity fund-of-funds in Australia in 1998 and has since raised three unlisted fund-of-funds, plus the Australia-listed ING Private Equity Access Limited. The latter recently committed $10 million to Archer Capital Fund 4, a $1.2 billion vehicle that is nearing its final close, and $10 million to Quadrant Private Equity Fund 2.
Schahinger said ING will commit an additional $30 million from its fourth vehicle to Quadrant’s second fund. The mid-market Australian private equity firm recently hit its hard cap of A$500 million ($412 million), well above its initial A$400million target, according to Quadrant managing director Chris Hadley.