Reverence Capital has raised well over half its targeted $1 billion for its debut mid-market fund, according to sources with knowledge of the fundraising.
Sovereign wealth managers and pension funds are providing the largest amount of capital to the fund, equivalent to about 60 per cent of commitments, while high net worth individuals and family offices are providing the remainder.
The fund has a hard cap of $1.2 billion and is expected to close in the first quarter of 2016, said one source.
Officials from Reverence declined to comment on the fundraising, which began in the spring.
Capital from the fund has been used to buy a minority stake in Russell Investments in a buyout led by TA Associates. The asset management company is being acquired from the London Stock Exchange Group for a total transaction size of $1.1 billion. The deal was announced on 8 October.
The new fund will make both control-oriented buyouts and minority equity stake purchases of financial service businesses in the US, Canada and Western Europe, including asset management firms, banks, specialty finance, brokerage, financial payments and insurance businesses. Investments will range from $75 million to $150 million.
Former Goldman Sachs global financial sponsor head Milton Berlinski and securities partner Peter Aberg, and ex-General Atlantic managing director Alexander Chulack established Reverence in June 2013.
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