Schroders fund of funds has E172m

The asset management firm looks set to reach the E300m target it set for its first fund of funds by the end of the second quarter 2002.

Schroders, the asset management firm, has raised E172m at the first close of its inaugural fund of funds.

When the firm launched Schroder Private Equity Fund of Funds last October, it set a E300m target and a mid 2002 deadline. With this first closing under wraps, the group looks set to achieve its goal.

According to Andrew Sykes, head of alternative investments at Schroders, interest in the fund has been good because of the “transparency and simplicity” of a listed vehicle. “It has proved appealing despite the current economic downturn.”

The fund will invest in more than 20 funds. It has an allocation of around 50 per cent devoted to European companies, between 40 and 60 per cent to US funds and 10 per cent for the rest of the world. According to Sykes, it will invest across most markets, but have a preference for buyout funds. To date around E160m has been committed to 12 funds including Cinven, CVC Capital Partners, Index Ventures and Electra Partners Europe.

The listing on the Dublin Stock Exchange will allow for tiered classes of shares with different price and fee structures. The minimum subscription is E125,000 for A shares, E1m for B shares, and E10m for C shares.

The only investor name to have been disclosed is West Yorkshire County Council, the UK pensions fund, which has committed £10m. “We look forward to receiving more commitments before the final close in mid 2002,” said Sykes.