Pomona closes Fund VIII on $1.75bn hard-cap

The oversubscribed fund exceeded its $1.3bn target. 

Pomona Capital has closed its eighth fund on its $1.75 billion hard-cap. 

Fund VIII had a target of $1.3 billion and was substantially oversubscribed, according to a statement. Pomona launched the fund in 2012 and had collected about $1.14 billion as of last October, Private Equity International previously reported.

Fund VIII will target the same type of investments as its predecessors – purchasing interest in high-quality private equity funds, as well as portfolios of private equity-backed companies. Pomona’s secondaries business manages $4.4 billion in committed capital across its eight funds, according to its website.

“We’re focused on finding that 1 percent of deals for us that meet our quality benchmarks,” Michael Granoff, CEO of Pomona Capital tells Private Equity International.  “Sellers are selling all over the world. Secondaries aren’t a monolithic market. Our strategy for finding those opportunities remains unchanged.”

Granoff added that his team is industry and regionally agnostic and is instead more interested on the quality of an available asset, the quality of management team, and price.

“With this fund we already started partly invested because we had the ING portfolio acquisition, which formed the basis of this fund,” he said. “In a sense it’s a secondary of a secondary and investors were interested in that.” 

Other secondaries funds have also found success in the current market environment. Blackstone recently announced the $1.5 billion first close of its first secondaries fund since acquiring the secondaries group from Credit Suisse.  France-based Idinvest Partners also announced the final close for its Secondary Fund II (ISF II) at €214m, closing above its original target of €200m. Both Blackstone and Idinvest closed this month.

Pomona was founded in 1994 and manages about $6.9 billion across its secondaries, fund of funds and co-investment vehicles.