Standard Life targets Eur1bn with second fund-of-funds

01 April 2002

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Standard Life has launched its second fund-of-funds, European Strategic Partners II (ESP II), with a target of Eur1bn. The fund will be managed by Standard Life Investments Private Equity (SLIPE), and is the successor to European Strategic Partners, a fund-of-funds, which closed on Eur868m in October 2000. Like its predecessor, ESP II will invest in a mix of European private equity funds and direct investments. Investors in ESP II have the choice of participating in either a partnership exclusively made up of private equity funds and/or one consisting of at least 70% in private equity funds and 30% in direct co-investment opportunities, compared with a 60/40% split for the last fund-of-funds. Standard Life Assurance Company will provide a cornerstone commitment of Eur500m. Investors in Standard Lifeâ€™s previous fund-of-funds include UK pension funds, such as Lincolnshire County Council, and Aberdeen Murray Johnstone Private Equity (AMJPE). The direct investments made by ESP II will be co-investments made alongside investee funds and other institutions with which SLIPE has an established relationship. The average investment size will be Eur10m, largely in buyouts, as part of transactions in the range of Eur50-400m. Fund investments, however, will be largely focused on Western Europe based mid-market buyout funds, which have proved successful for the team in the past. The team will consider investments in debut funds, but will continue its policy of steering away from venture. Investments in funds dedicated to providing development capital will also be looked at.