Pomona Capital, the private equity fund of funds and secondaries investor operating out of New York and London, has agreed to manage a $1.1 billion (€900 million) portfolio of private equity investments on behalf of ING Investment Management Americas (IIM).
Under the deal, Pomona, which has a strategic partnership with IIM’s parent ING Group, will take over the management of IIM’s US insurance companies’ existing private equity fund investment programme, which comprises $600 million committed to 57 partnerships.
In addition, the companies have instructed Pomona to invest another $500 million in a range of primary and secondary fund interests over the next five years.
The agreement increases Pomona’s assets under management to $2.4 billion.
Michael Granoff, CEO of Pomona, said in a statement that the deal “meaningfully strengthens our position in the private equity industry” at an opportune time for investment at which “valuations have declined, capital competition has decreased and the opportunity set is robust.”
In December 2002 Pomona closed its fifth secondaries fund on $582 million, $182 million above the original target. The firm also manages three primary funds of funds. The firm is currently invested in over 150 buyout, venture capital and distressed funds. It was founded in 1994.
IIM is part of ING Investment Management, an institutional investor with about $350 billion under management.