Pomona Capital announced Tuesday that it has closed its fourth "primary" fund-of-funds to new investors after blowing away its target of $200 million.
Pomona Partnership Holdings IV has raised $250 million, well above expectations, and will purchase primary and secondary interests in top-performing private equity funds, the New York-based private equity firm said in a press release. Pomona plans to continue to leverage its extensive experience buying secondary interests to identify and access best of breed funds, the company said.
"Investors understand that they must invest with the highest quality funds top and bottom quartile private equity funds is over 50%," said Michael Granoff, Pomona Capital's CEO said in a prepared statement. "Yet access to the best buyout and venture funds is becoming increasingly difficult. The Pomona approach of deploying risk and maximizing the return in a complex private equity market."
Pomona Partnership Holdings IV has already made a number of commitments to funds including Providence V, Bain VIII, Hellman and Friedman V, BC Partners VIII, Sevin Rosen IX, NEA 11 and Northbridge VI, the company said.
Granoff added, "Virtually all of Pomona's commitments were to funds that were closed to new investors, providing a very strong start for the fund."
Pomona, which buys funding commitments that other private equity investors want to exit, manages over $3 billion in six secondary and four primary interest fund-of-funds for a group of wealthy investors across the globe.