Unigestion launches EUR150m fund-of-funds

01 February 2009

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Fund

Privately-owned asset manager Unigestion has launched two private equity funds-of-funds (see page 10 for second fund). The first, Unigestion Secondary Opportunity Fund II, is structured as a Scottish Limited Partnership; German GmbH & Co KG; and French FCPR (subject to investor demand), with a target of EUR150m. Minimum commitments are EUR5m, with a commitment period of three years from final close. The fund-of-funds has a lifespan of 10 years with two potential extensions of one year each. The vehicle expects to hold a first closing in the second quarter of 2009. No placement agent was used, while legal advice was provided by SJ Berwin.

Investors

Target investors are existing investors in Unigestion's funds-of-funds programmes plus new investors from the world of pension funds, insurance companies and family offices across Europe and the US.

Investments

The fund-of-funds focuses on smaller investments, which will typically be in the range of EUR2-20m in line with Unigestion's strategy of seeking opportunities below the radar of the large secondary investors and intermediaries.

The fund-of-funds aims to take advantage of the sharp down-valuation in private equity assets and an increasing number of distressed sellers. With discounts to NAV of 50% and more currently available, the fund seeks to exploit the potential for significant returns over the economic cycle on an opportunistic basis. It will focus on small- and mid-sized transactions facing limited competition and originating from distressed sellers, with the aim of building a global portfolio based on an overweight exposure to buyouts. Before each investment, the fund plans to carefully analyse the underlying companies' characteristics such as debt structure and maturity, covenants and sustainable earnings levels. The fund-of-funds has no geographical target allocation, but because Unigestion will focus on funds from GPs well known to the firm it is expected that there will be a bias to European funds, followed by US and Asian funds.

A substantial pipeline of transactions is already lined up, although Unigestion stresses that there is no rush to deploy the money. Pricing levels in absolute terms are expected by Unigestion to drop further. The strategy is in line with the firm's first secondary fund which was launched back in 2000 and successfully invested during the years 2001-2004.

People

Unigestion's private equity team, which is headed by Hanspeter Bader, comprises 23 professionals in Geneva, London, New York, Paris and Singapore.

Name: Unigestion Secondary Opportunity Fund II

Target: EUR150m

Focus: Secondaries, global

Contact: Hanspeter Bader

Address: Unigestion SA

8C avenue de Champel CP 387

CH 1211 Geneva 12

Switzerland

Tel: +41 22 704 41 11

Advisers