Private Advisors closes $120 mln for third co-investment fund

Richmond, Virginia-based alternative investment firm Private Advisors has raised $120 million for its third co-investment fund. The target was $100 million.


RICHMOND, VA – March 17, 2014 – Private Advisors, LLC, a leading alternative investment firm in Richmond, Virginia, announced the successful closing of its third dedicated co-investment fund, Private Advisors Coinvestment Fund III, LP (“Fund III”). Fund III closed on $120 million in commitments, exceeding its target of $100 million.
Private Advisors’ co-investment capability leverages the firm’s expansive relationships across the lower middle market in North America, built over the firm’s 15-year history of primary fund investing in that market segment. Private Advisors has co-invested in 51 transactions in the lower middle market over the past decade. The team seeks to invest $3 – $10 million in each co-investment and will focus primarily on buyout and growth equity transactions in partnership with leading fund managers in the lower middle market. Approximately 35% of Fund III’s capital has already been committed or invested in co-investments in the North American lower middle market.
“We appreciate the support our investors have shown us, particularly our re-up investors that comprise over half of Fund III’s capital commitments,” says Chris Stringer, Partner and head of Private Equity at Private Advisors. “Additionally, the performance of our prior funds along with our disciplined, niche focus allowed us to attract several new institutional limited partners. We believe that institutional investors continue to recognize the potential opportunity to generate consistently attractive returns in the lower middle market along with what we believe are the attractive fee savings and diversification our co-investment program offers investors.”
Tripp Taliaferro, a Partner at Private Advisors who leads the co-investment program says: “We believe the market environment remains attractive for investing in the lower middle market, and we generally see a substantial opportunity set of over 100 co-investment deals per year in this market segment. We believe that Private Advisors is well-positioned to capitalize on these opportunities on behalf of our investors, and we look forward to creating a successful portfolio of co-investments for our investors in Fund III.”
About Private Advisors
Private Advisors, LLC, is a leading alternative investment firm, managing over $5.3 billion in assets as of January 31, 2014. It is an affiliate of the Investments Group of New York Life Insurance Company, a Fortune 100 company and one of the largest life insurers in the world*. Private Advisors operates an integrated private equity platform focused on four distinct investment capabilities including primary private equity funds, co-investing in equity securities of private companies, co-investing in mezzanine/junior credit securities of private companies, and purchasing secondary market interests in private equity funds and private companies. The firm also provides expertise in diversified hedge fund strategies.