AltamarCAM Partners, a global asset management firm focused on investing in the private markets, has announced that it has exceeded the target size of its fourth Secondaries fund, ACP Secondaries 4 (ACP S4), reaching €1.025 billion in commitments at its final close.
ACP S4 had a target size of 750 million euros, but the high demand from international investors in the final stretch, namely from Germany, led to the fund reaching its maximum size.
ACP S4 is AltamarCAM’s fourth fund focused on investing in secondary transactions. The fund has already built up strong portfolio visibility, having completed and approved more than 50 transactions, representing a committed capital of over €650 million. Given the strong deal flow, the team plans to launch its 5th fund later this calendar year.
ACP S4 is focused on finding investment opportunities in the Private Equity secondary market, mainly in Europe and North America, looking at all times to achieve an attractive risk-return profile while adhering to the firm’s investment philosophy, obtaining attractive returns while maintaining a conservative approach centred on capital preservation.
The fund’s investor base is spread across Spain, Germany, Latin America and other European countries, and is made up of institutional investors, family offices and local and international private banks. A very high percentage of the institutions that invested in AltamarCAM’s previous secondary funds have demonstrated their continued confidence in the firm, once again making investment commitments in this new vehicle.
Additionally, it is important to note the entry of a significant amount of German institutional investors that entered the fund, particularly insurers and pension funds, in the period directly following Altamar’s integration with CAM Alternatives in Germany, which was formalized in July 2021.
“We are very pleased with the positive response from investors to our fourth secondary vehicle ACP S4. We are delighted that with this fund we have managed to reach the record figure of over €1 billion; it demonstrates the trust that investors place in Altamar CAM, with whose commitments the group has been able to surpass a total AUM of 16 billion euros,” said José Luis Molina, AltamarCAM’s recently appointed Global CEO.
“Investing in the secondary market by buying an investor’s position in an existing fund is an excellent and complementary investment strategy. It is a very attractive market, but not an easy one to access, given that it requires significant investment experience as well as competitive positioning to access, evaluate and complete transactions. The advantages of the asset class include faster portfolio construction, increased early visibility on underlying companies, and above all a mitigation of the J-Curve effect due to the reduction of average investment periods,” Molina added.
AltamarCAM’s secondary investment activity is focused on the origination of smaller, niche transactions with less competition, avoiding large auction processes and allowing the firm to leverage its resources, relationships and execution capabilities in terms of speed and consistency while maintaining high ESG standards. One of the keys to the team’s success in is the quality and depth of their relationships, having built up high levels of trust over two decades of working with the most important managers and advisors in the market, building up AltamarCAM’s extensive network that consists of more than 3,000 analysed managers, of which over 350 are in the portfolio, and a total of over 700 fund investments.