Private Advisors raises $340m for fifth fund

New York Life Investments’ father-and-son led Private Advisors raised $279m for its small buyout fund of funds and an additional $61m for a parallel regulatory fund.

Private Advisors Small Company Buyout Fund V surpassed its $250 million target and closed on $279 million on 27 June, a person familiar with the firm told Private Equity International. 

A parallel Employee Retirement Income Security Act fund raised $61 million. This ERISA fund was created for some pension funds that are required by federal law to inform participants about the plan’s funding. ERISA guarantees payments of certain benefits if a pension fund’s plan is terminated, according to the US Department of Labour website. 

Louis Moelchert

The funds, which total $340 million, were in the market for about 18 months, the source said.

Private Advisors, which is the boutique firm of New York Life Investments, will commit the funds to 15 to 18 private equity fund managers that focus on small North American buyout and turnaround strategies, according to the statement. 

Private Advisors is seeking fund managers with 2012 to 2014 vintage years and whose committed capital bases are at least $500 million. The target companies should have enterprise values less than $150 million, the source disclosed.

Chip Moelchert

Private Advisors’ fourth small buyout fund of funds closed on $208 million in 2011, the source told PEI.

The firm has more than $4.7 billion in assets under management, including $1.9 billion in private equity, as of 31 March. Since its inception in 1997, the Richmond, Virginia-based firm has focused on private equity and diversified hedge fund strategies, according to its website.  
The firm is led by three managers including Chip Moelchert, former partner at Jefferson Capital, his father Louis Moelchert, and Charles Johnson, former president of hedge fund of funds group EIM, as stated on its website.