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Newbury closes direct co-investments from Fund IV

The vehicle has amassed $1.1bn so far for its latest secondaries vehicle.

Newbury Partners is edging towards the final close on its latest secondaries fund and has already closed a handful of direct co-investments from the vehicle, sister title Secondaries Investor has learned.

According to a fundraising update filed with the US Securities and Exchange Commission, the Connecticut-headquartered firm has raised $1.1 billion for Newbury Equity Partners IV, with $1.25 billion its final target.

The fund’s hard-cap is $1.4 billion and the firm held first close on $700 million for the vehicle in June, as Secondaries Investor reported.

Fund IV has a 10 percent allocation to direct co-investments, according to a source familiar with the fund, some of which has already been invested in small-to-mid-sized industrial companies. The average size of these investments from Fund IV is $10 million.

No placement agents have been used so far, the filing revealed.

More than 50 percent of the investors so far are pension funds, with half of those coming from Europe, including AP Fonden 3.

Founded in 2006, Newbury specialises in acquiring buyout, venture capital, special situations, mezzanine and fund of funds limited partnership interests in the secondaries market.

It focuses on small and mid-market interests, targeting transactions up to $250 million in value with no minimum deal size.

The firm has around $2.8 billion in assets under management, according to PEI data.

Its previous fund, the 2013-vintage Newbury Equity Partners III, closed on $1.1 billion, above its target of $1 billion. That fund is still being invested, Secondaries Investor understands.

In May Newbury partnered with Kline Hill Partners to acquire stakes in Akina Partners’ Euro Choice III and Euro Choice IV funds of funds. The Euro Choice funds target lower and mid-market investments in Europe.

Newbury declined to comment.