Old Mutual Alternative Investments (OMAI), Africa’s largest private alternative investment manager, is launching its third International Private Equity Fund of Funds (International FoF III) with a target size of US$300 million.
By investing in a globally diverse group of private equity portfolio funds managed by top-performing, independent and reputable private equity managers, International FoF III is continuing with the same successful strategy as OMAI’s previous two international Fund of Funds, which have delivered very competitive performances in US$ based on the latest figures.
International FoF III will run for 12 years after the initial closing date, plus a possible three-year extension, and will invest mainly in generalist portfolio funds, avoiding narrow focus funds such as bio-tech that carry inherently more risk.
To further reduce investor risk, International FoF III’ s private equity managers will invest in mid-to-large sized firms which are already well established, and will cover a broad range of business sectors including technology, healthcare, consumer, financial services, industrial, education and business services. These businesses will be seeking growth capital, or require transformational change and repositioning in their respective industries.
International FoF III expects to have exposure to opportunities in North America, Europe, Asia, Australia and to a lesser extent Latin America.
The first International Private Equity Fund of Funds was launched in 2009, and as of 30 September 2017 is currently producing an Internal Rate of Return (IRR) of 11.1% net of costs. The second International Private Equity Fund of Funds, launched in 2012,is currently producing an IRR of 16%, again net of costs. Past performance is not an indication of future performance, however.
Financial institutions looking to diversify their portfolios and access potentially attractive returns may be able to participate in the new Fund, which will be open to new investors for up to 30 months.
The new Fund is the first to be launched under the stewardship of Nabeel Laher, OMAI’s recently appointed Head of International Private Equity. Nabeel is also currently leading on the fundraising and roll-out of the Africa Private Equity Fund of Funds, supported by his team of experienced private equity investment professionals.
Paul Boynton, Chief Executive Officer of Old Mutual Alternative Investments (OMAI), said:
“Our new International Fund of Funds will operate along the same lines as our two other successful International Fund of Funds.
“We minimize risk while not seeking to limit potential upside by investing in portfolio funds managed by reputable, independent top-performing private equity managers who invest almost exclusively in established businesses. This approach has enabled our international Fund of Funds to generate attractive returns even during times when global stock markets have underperformed.”
Nabeel Laher, Head of International Private Equity at OMAI, added:
“The attraction of our International Fund of Funds is that downside risk is mitigated by investing in portfolio funds run by fund managers who are the cream of the crop with proven track records, while having unrestricted upside.”