The $93bn system has operated with a growing private equity overweight for the last six years, after being dramatically affected by the denominator effect.
NATSEC Capital Partners Buyout Fund, which invests in dual-use technologies critical to national security, is targeting $300m with a $1bn hard-cap, sources told Buyouts.
LP sales accounted for about $40bn, or 59% of activity in the first half, according to Jefferies’ half-year volume report.
Schroders’ latest investor insights survey shows LPs widely expecting to allocate again to certain illiquid assets, above all private equity and credit. This reflects what the fund house is hearing from clients.
A smaller fund means smaller fees, which means potentially less capital to run the organization. And as firms grew over the past five to 10 years, they will face the choice of needing to invest more to continue growing.
The single-asset continuation fund deal is among many that are keeping secondaries professionals busy and sending the market to what could be record volume levels.
Mega-funds explain why two key indicators of private equity fundraising – capital inflows and fund closings – move in seemingly different directions.
If Linden Capital Partners VI meets the target, it would be 50% larger than its 2021-vintage predecessor.
SWIB says it expects to increase its private equity and debt commitment pacing to reduce the system’s excess liquidity.
As mid-market and emerging managers struggle for a sip of a dwindling pool of capital, opportunities abound for investors who can co-invest alongside GPs.