Pomona closes $250m fund of funds

Private equity fund of funds and secondaries firm Pomona Capital has announced a final close on its fourth primary fund of funds with total capital commitments of $250 million (€206 million).

Pomona Partnership Holdings IV, which exceeded its initial target by $50 million, will focus on primary investments in private equity funds, while also pursuing special secondary interests as well.

Virtually all of Pomona’s 2004 commitments were to funds that were closed to new investors. Michael Granoff, CEO, Pomona Capital

The fund has already committed capital to a number of private equity and venture capital firms, including funds managed by Providence Equity Partners, Bain Capital, Hellman and Friedman, BC Partners, NEA and Northbridge.

In a statement, Michael Granoff, chief executive officer of Pomona, noted that the dichotomy between the best and worst performing funds was creating access issues at the top buyout and venture firmss. Nevertheless, according to Granoff, “virtually all of Pomona’s 2004 commitments were to funds that were closed to new investors.”

In March last year, Pomona took over the management of a $600 million private equity portfolio on behalf of ING’s US insurance group, ING Investment Management Americas (IIM). At the time, IIM had given Pomona a mandate to invest another $500 million in primary and secondary fund interests over the next five years. Through a strategic partnership, ING Group is an investor in Pomona.

Founded in 1994, Pomona has offices in London and New York and manages over $3 billion in assets through its six secondary and four primary fund of funds.