Maurizio Arrigo, Head of Private Equity at PAA, said “the capital raise represents an important achievement for Pictet that positions us as a leader in the global private equity sector, capable of attracting both high net worth individuals (HNWI) and traditional institutional investors.”
“As this fund is 1.5 times bigger than its predecessor which we closed in 2017, this successful fundraising reinforces the important role private equity plays in investors’ strategic asset allocation.”
Monte Rosa V will invest mostly in North American and European buyout funds and to a lesser extent in other geographies (e.g. China, Australia and emerging markets) and other strategies (venture capital, growth and turnaround). Around 20% of the fund will be deployed in co-investments and secondary transactions. At the time of closing, the programme was 50% committed.
This fundraising saw substantial interest both from prior investors in the Monte Rosa funds as well as from a new and geographically diversified set of clients.
“We are particularly grateful to our investors for their continued support in these challenging times.”
Pictet utilises a consistent portfolio construction approach across its private equity funds, irrespective of total capital raised. Pictet has nurtured longstanding and close relationships with a limited number of private equity firms where access to investment funds can otherwise be restricted.
Arrigo explains “We are very selective when adding new relationships and strive to identify private equity teams that stand out for their track record, specific strategy and investment discipline.”
PAA created the Monte Rosa franchise in 2008 and launched Monte Rosa I with the aim of offering private equity to a wider range of clients. Today, PAA manages USD 15.5 bn in private equity, of which USD 12.5 bn is in segregated accounts and USD 2.9 bn in the Monte Rosa commingled fund of funds programme.
Mature programs have generated an annualised net performance (net IRR) above 13% and a net total value to paid-in (TVPI) of 1.65x*. Investors include pension funds, financial institutions, foundations, family offices and HNWI.
Since its debut, almost 30 years ago, PAA has committed to more than 150 private equity funds and participated in 155 co-investments of which 90 were realised generating a multiple of 2.70x* on invested capital.
*These performance figures result from aggregates of several products/investments closed to new investors. Past performances are no guarantee of future returns.
Note: The Monte Rosa Funds franchise is accessible to professional investors only and subject to local sales restrictions.