Capital Dynamics has announced that Prime Edge Capital (PEC), the first collateralized private equity obligation (CPO) fund of funds, has reached a second closing, increasing PEC's capitalisation by E25m to E175m.
The majority of investment has come from banks and pension funds across Europe and Asia. “We are extremely pleased with the level of commitment we have received for what is effectively a first time product”, said Thomas Kubr, partner at Capital Dynamics.
The fund of funds is a joint venture of Capital Dynamics, which acts as lead manager and Rainer Marc Frey (RMF Group) and Hamilton Lane Advisors, which manage the investment selection and risk management process for Prime Edge.
Following the second closing, PEC now has a total investment capacity of E280m. Since its first closing, Prime Edge Capital has committed E91.4m to 12 private equity partnerships.
Allianz Risk Transfer (acting through its Netherlands and Swiss entities) facilitated the notes issuance through the provision of a financial guarantee of the senior notes and a liquidity facility. The Global Credit Derivative Team at Deutsche Bank acted as arranger for the transaction.
Capital Dynamics is currently making plans for its second CPO fund, Prime Edge II. A spokesman for Capital Dynamics declined to reveal details of the plans for Prime Edge II, citing US SEC regulations.