Hollyport closes Secondary Opportunities Fund VII on $1bn

The close took place in the final weeks of 2019. The target for the fund was $750m with a $1bn hard-cap, and the vehicle will focus on tail-end portfolios and fund restructurings. This is double the size of the GP's previous fund, which closed on $500m against its $400m target in 2017.

The vehicle charges a 1.5% management fee and 15% carry after a 7% hurdle, with a ratchet up to 20% at 2x net return.

In keeping with its mandate to target tail-end portfolios, the new vehicle has already acquired stakes in an Equistone legacy fund (originally named Barclays Private Equity fund) and in Indigo V at the end of last year. Both stakes were sold by Parallel Private Equity, according to public filings.

Investors
At the end of last year both the Connecticut Retirement Plans and Trust Fund, and Utah's School and Institutional Trust Fund's office in the US were considering commitments to Hollyport VII, according to pension fund documents obtained by Unquote. 

Investments
Like its predecessor, the fund will target tail-end portfolios and fund restructurings, building a portfolio of 30-50 transactions with an average size of $20-35m.

As of today, the secondaries vehicle is roughly 25% invested, according to a person close to the situation. Hollyport funds have a three-year investment period; historically, Hollyport has invested all of its funds within two years, so the expectation is that Hollyport VII will stick to a similar schedule.

Assuming a two-year investment period in line with previous funds, Hollyport VIII will be raising capital in early 2021, the person close to the situation said.

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