Latest news with #Coller
Axios
11 hours ago
- Business
- Axios
It's a bad time to launch first-time funds, but that isn't stopping investors
Conventional wisdom is that now is a terrible time for private market investors to launch first-time funds. But that isn't stopping a slew of folks from trying. The big picture: Limited partners are seeing a wave of general partners spinouts, and many expect that the trend will outpace industry consolidation, according to a recent Coller Capital survey. One major reason, they say, is that firms have done a lousy job nurturing homegrown talent. Coller's questionnaire didn't go a level deeper, but it's not too hard to read "tilted fund economics" in that response. Everyone inside a firm knows who brings in the home run deals, and if that rainmaker doesn't get compensated like one. By the numbers: 38% of LP respondents said they expect the number of new managers to increase over the next three to five years, compared to just 33% who say they expect it to decrease. The "increase" cohort was particularly strong among Asia-Pacific respondents (64%). Coller also found that 36% of LPs report the number of spinout funds within their portfolio has increased within the past few years, while only 3% said it's decreased. The majority said it's remained flat. Zoom out: Raising a first-time fund is never easy, and many believe the process has become even more challenging as LPs have sought to shrink their manager rosters — preferring to plug larger amounts into multi-strategy firms. Plus the VC/PE distribution drought that's reduced the amount of available LP capital. On the other hand, LPs also worry that too much mega-fund exposure won't allow them to beat industry benchmarks — which means many are willing to bet on a few emerging managers to provide alpha. What they're saying: "It's like the old phrase: people hate Congress but love their congressperson," a veteran LP tells me. "A lot of people are super risk averse (and liquidity crunched) right now, making emerging funds a challenge to raise, but known quantities de-risk the decision for those who are able to put out capital."
Yahoo
29-03-2025
- Business
- Yahoo
Australia's $1 Trillion Market Draws Coller Capital
(Bloomberg) -- Coller Capital Ltd., a UK fund manager specializing in private market secondaries, is expanding in Australia with the launch of several funds targeting wealthy locals. Why Did the Government Declare War on My Adorable Tiny Truck? Gold-Rush Fever Returns to Historic New Zealand Mining Town How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes The firm, which manages $38 billion, has launched two secondary feeder funds — Coller Private Capital Secondaries Fund and Coller Private Equity Secondaries Fund, said David Hallifax, head of Australia and New Zealand private wealth distribution in an interview. Both products target Australian investors keen to diversify investment portfolios away from the public space, Hallifax added. Coller joins a growing list of asset managers promoting private investment vehicles to wealthy individuals in Australia, a market that's worth over $1 trillion, according to one estimate. Firms including Ares Management Corp., Brookfield Oaktree Wealth Solutions and Nuveen LLC have launched similar products as a hedge against a possible stock market slump. Such loans are able to offer high returns in a period of elevated interest rates. Coller's private credit funds have around 3,500 loans, said Hallifax. 'So if one of the loans was to be distressed, it's not going to have really any bearing on the end investor's return profile,' he said. The Coller Private Credit Secondaries Fund is targeting net returns of between 11% to 13%, while the Coller Private Equity Secondaries Fund is offering 13% to 15% after fees, said Hallifax. The minimum investment amount for each fund is A$25,000 ($15,718) and they are distributed through Australian financial advisers, private banks and wealth managers, he said. Coller is also growing in Asia, particularly in private wealth. The firm recently hired Pak-Seng Lai from Blue Owl Capital to head up its Asia Pacific wealth team in Hong Kong and established a Singapore office. (Corrects name of Coller Private Credit Secondaries Fund and targeted net return in fifth paragraph of story published on March 27.) Business Schools Are Back Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer A New 'China Shock' Is Destroying Jobs Around the World The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? ©2025 Bloomberg L.P. Sign in to access your portfolio
