Pittsburgh financial services giant Mellon Financial Corp. has announced that its Private Wealth Management group has held a third and final close on its fourth fund totaling $56.4 million (€44.4 million).
Mellon Private Equity Fund IV is a fund of funds in both private equity and venture capital firms, and is available to high-net-worth individuals, family offices, foundations, endowments and employee benefit plans. According to Nick Vidnovic, manager of private equity for Mellon’s Private Wealth Management group, the fund took approximately nine months to raise.
Approximately half of the fund’s investors – of which almost all are US-based – are high-net-worth individuals and family office clients, he said.
Typically, the Mellon’s funds of funds have invested 75 percent of their capital into venture capital, and 25 percent into middle-market buyout shops. Mellon has been active in investing in private equity and venture capital funds on behalf of its clients since the early 80s, and raised its first fund of funds between 1999 and 2000. Vidnovic said previous funds have hovered around the $50 million mark, and have been raised within year or year-and-a-half intervals.
The latest fundraising comes just a month after Mellon Ventures, the firm’s private equity and venture capital arm, announced it would not make any new investments with its eight-year-old fund.
Mellon Ventures, also based in Pittsburgh, manages $1.3 billion in capital and continues to support 130 portfolio companies and more than 50 investments in private equity funds. According to a Mellon spokesperson, the venture unit is being halted because it “isn’t core to our existing operations.”
No plans have been announced to liquidate the fund, which also has offices in Atlanta, Los Angeles and New York. Unlike the private equity fund of funds operation, Mellon Ventures is sponsored by its Mellon parent, which has more than $3.7 trillion in assets under management, administration or custody.