Portfolio Advisors closed its eighth private equity fund of funds, the $1.22 billion Portfolio Advisors Private Equity Fund VIII, above its $900 million target, said Brian Murphy, managing director of the private equity consulting and management firm.
Some $1.2 billion of the total fund commitments were from limited partners, with the remainder from the general partner, he said. Portfolio Advisors previous private equity fund of funds, Portfolio Advisors Private Equity Fund VII, closed in 2013 with $1.1 billion.
The fund’s structure allows limited partners to customize their commitments in seven investment options that includes diversified buyout, diversified venture capital and diversified special situations. About half the investors chose a model portfolio constructed by Portfolio Advisors, Mr. Murphy noted.
“We figured out a way to create a product that has the look and feel of a customized separate account,” he said.
About 70% of investors had invested in previous Portfolio Advisors funds. Investors include the $700 million El Paso (Texas) City Employees’ Pension Fund, $500 million Lakeland (Fla.) Retirement System and the $38 million Temple (Texas) Firemen's Relief and Retirement Fund.