Portfolio Advisors raises $1bn for fifth FoF

The latest private equity fund of funds from the Connecticut-based advisory group and funds manager will invest in buyout, venture and special situation funds.

Portfolio Advisors has closed its fifth private equity fund of funds, PAPEF V, with nearly $1.05 billion in commitments. Its predecessor raised $982 million in 2006 and 2007. The firm typically markets funds for 18-month periods.

Managing director Paul Crotty said that while the fundraising environment became “increasingly challenging as 2008 progressed”, PAPEF V surpassed its target. The firm also “essentially met” its target for its third real estate fund of funds, which has closed on $147 million.

“We believe the flexible, menu-driven structure of both of the funds contributed to these successes,” Crotty wrote in an email.

The private equity fund of fund's structure enabled limited partners to choose desired sector allocations from among diversified buyout, US mid-market buyout, European buyout, venture and special situation funds.

LPs allocated approximately one-third each to buyout, venture and special situations funds. The vehicle has been making primary and secondary investments since an initial closing in 2007, Portfolio Advisors said in a statement.

Founded in 1994, the firm's business lines include fund management, investment adivsory services and portfolio administration and reporting.