Old Mutual Alternative Investments (OMAI), Africa’s largest alternative investment manager, is launching its third International Private Equity Fund of Funds (International FoF III) with a target size of US$300 million.
The fund will be open to new investors for up to 30 months and will run for 12 years after the initial closing date, plus a possible three-year extension. It will invest mainly in generalist portfolio funds, avoiding narrow focus funds such as bio-tech that inherently carry more risk. In a bid to reduce investor risk even further, 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.
As indicated by its name, International FoF III expects to have exposure to opportunities in North America, Europe, Asia, Australia and to a lesser extent Latin America.
According to Old Mutual, the first International Private Equity Fund of Funds was launched in 2009, and was producing an Internal Rate of Return (IRR) of 11.1% net of costs as of 30 September 2017. The second International Private Equity Fund of Funds, which launched in 2012, is currently producing an IRR of 16% (net of costs). It is important to note however, that past performance is not an indication of future performance.
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.”