Schroders’ FoF closes at E242m

Schroders has closed its first private equity fund of funds and has announced that another fund is to follow.

Schroders plc has completed the final closing of its Schroder Private Equity Fund of Funds, which will look to invest in private equity funds primarily in the US and Europe.

The fund has received commitments totaling E242m, although a 30 per cent over-commitment facility will give the firm up to E315m to invest in individual private equity partnerships.

Schroder Ventures (London) Ltd will act as investment advisor to the fund, which has already committed E175m to thirteen private equity partnerships across Europe and the US, including a E15m commitment to Bridgepoint Capital's latest mid-market buyout fund.

Andrew Sykes, executive director of Schroders, said he was delighted with the amount raised for the fund given the current market conditions, adding that he felt there was potential for further funds to be raised. “We continue to see unsatisfied demand for funds of this kind, and we will be launching a further fund in the coming months.”

According to Schroder Ventures (London) director Guy Eastman, the new fund will be raised along similar lines to Schroder Private Equity Fund of Funds. 'We will be looking to raise a similar amount, with launch documents being issued in autumn with a possible first closing in January 2003. The new fund will give investors who were prevented from investing [due to the six-month fundraising term limit imposed by the Central Bank of Ireland] a chance to commit to a similarly sized and managed fund.'

One of the main commitments to the fund came from the West Yorkshire Superannuation Fund, which committed E10m. Eastman anticipates further interest from UK local authorities in the next fund as such investors will have enough time to carry out their due diligence.

Schroder Investment Management (Ireland) will manage the fund, with Schroder Investment Management acting as investment manager.

Schroder Ventures (London) is a subsidiary of Schroder Ventures International Investment Trust (SVIIT), a private equity fund of funds with net assets of E630m. SVIIT invests primarily in Schroder Ventures and Permira buyout and development capital funds.