Adams Street raises USD 1.3bn for Co-Investment Fund V

Harriet Matthews
09 November 2022

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Private markets asset manager Adams Street Partners has raised USD 1.3bn for Co-Investment Fund V, surpassing the vehicleтs USD 1bn target.

The fund was launched at the start of 2021, David Brett, partner and head of co-investments, told Unquote.

According to Unquote Data, Barclays, Greenstone Equity Partners and Thomas Investment Partners are providing advice on the vehicle.

The firm's previous co-investment programme, Adams Street Co-Investment Fund IV, raised USD 680m across the main fund and a sidecar vehicle. The 2018-vintage vehicle had a USD 500m target and was 89% deployed as of April 2022, according to Unquote Data.

Adams Street has USD 52bn AUM across strategies including private equity funds-of-funds, secondaries and venture-focused funds. The firm held a final close for its co-mingled Adams Street 2021 Global Fund in December 2021 on USD 832m.

Institutional LPs and high-net worth individuals alike have expressed their appetite for co-investments in recent months. These deals offer a more favourable fee structure to investors than they would receive through a typical PE fund, while also allowing them to gain greater exposure, and therefore greater potential for higher returns, with selected assets.

In June 2022, private markets investment platform announced the launch of a co-investment offering for wealth managers and private banks, as reported.

Further co-investment vehicles currently raising capital in the European market include AlpInvest Co-Investment Fund IX, as reported. Access Capital Partners held a final close for its second co-investment fund in September 2022 on EUR 350m, as reported, while LGT held a USD 2bn final close for its third co-investment fund in July 2022 on USD 2bn, as reported.

Investors
The fundraise was oversubscribed, the GP said in a press release. According to Unquote Data, LPs in the fund include US institutional investors Oklahoma Firefighters Pension & Retirement System (OFPRS), Policemen's Annuity and Benefit Fund of Chicago, and Ventura County Employees' Retirement Association (VCERA).

Investments
Co-Investment Fund V has a global mandate, Brett said, which will be diversified across time, industry, business size and geography. The firm will co-invest alongside its network of buyout and growth equity GPs.

The firm's previous co-investment vehicle deployed equity tickets of USD 10m-40m per deal and aimed to make 12-18 investments per year over a three to five year investment period, according to Unquote Data.

Co-investment strategies are well-placed to navigate through the current macroenomic environment, according to Brett. "Co-investments can quickly lean into or away from particular sectors and geographies as conditions shift," he said. "That tactical agility allows Adams Street to focus on companies that we think are better positioned to be defensive and resilient, and therefore potentially better-placed to withstand disruption."

People
Adams Street Partners – David Brett (partner, head of co-investments).