Northgate gears up for Fund V

The Religare-backed fund of funds, based in California and London, is likely to target north of $1bn for its fifth vehicle.

Northgate Capital, a fund of funds with offices in California and London, is gearing up to raise its fifth fund, which will likely have a target north of $1 billion, sources tell PEO.

Northgate declined to comment.

The firm, founded in 2000, closed it fourth fund on $600 million in 2008. Fund IV is close to being fully invested.

Northgate commits to managers mostly in the developed markets, but has been expanding into emerging markets in the past few years. In February, Indian financial services giant Religare acquired an ownership stake in the firm. The partnership will help Northgate expand further into emerging economies, especially in Asia.

Under the terms of the deal, Northgate’s five partners will retain controlling interests in the firm’s general partner entities and a significant stake in the fund management company.

The firm manages venture capital and private equity funds that invest directly in companies and also makes commitments to other private equity and venture capital managers. The firm manages about $3 billion for more than 400 institutional and high net worth individuals. Northgate also engages in co-investments.