Madrid-based fund manager Arcano Asset Management has launched a secondary private equity fund, its fourth vehicle of this type, which aims to raise €300m. Arcano Secondary Fund XIV is expected to capitalise on attractive prices derived from the “uncertainty caused by Covid-19”, the firm said.

The fund’s goal is to invest globally, with a particular focus on Europe and the US. Managers who are specialised in the middle-market and in specific sectors or geographic areas will be the main targets.

Arcano expects to hold a first close of the fund in mid-November this year by attracting institutional and private banking investors. It will invest at least 80% of the fund in operations in the secondary market, being able to do up to 20% in direct co-investments in companies, the firm said in a statement.

The secondaries market has become a popular proposition amid the pandemic. The sector will probably raise more money in 2020 than ever before, even though much of the world economy is sliding into recession.

In the first six months this year, secondary funds amassed $44bn across 11 strategies globally in the first six months of 2020, far outpacing the whole of 2019, when the asset class collected $26bn, according to data provider Preqin.

“In the current economic situation, for several reasons, private equity portfolios are being sold at very attractive conditions for investors such as Arcano. Our purpose, as in the last funds, is to take advantage of the opportunity to invest in leading private companies in their sectors at attractive prices and with the best managers”, said Ricardo Miró-Quesada, managing director and CIO of private equity & impact at Arcano Capital.

Since it was launched in 2003, the firm has managed and advised more than €6.7bn in assets, according to a press release.

Source: Private Equity News

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