Newbury Partners has closed its third secondaries fund on $1.1 billion, above the firm’s $1 billion target and hard-cap.
Newbury did not require permission from limited partners to go above the firm’s hard-cap, but did receive approval from its advisory board, Newbury managing partner Richard Lichter told Private Equity International. Newbury launched Fund III in June of 2013 and has completed four investments to date. A majority of the capital in Fund III was raised internally, though placement agent MVision helped attract additional capital.
Roughly 90 percent of LPs in Fund III are existing Newbury investors, with about 40 percent based in Europe. In addition to US investors, Fund III attracted a substantial amount of capital from LPs in the Nordic region and Australia.
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.
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 specialises in acquiring LP interests in buyout, venture capital, special situations, mezzanine and fund of funds vehicles.