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LPs show continued appetite for VC fund of funds as ASI closes latest oversubscribed vehicle

LPs show continued appetite for VC fund of funds as ASI closes latest oversubscribed vehicle


Continued LP demand for venture capital fund of funds opportunities has helped Aberdeen Standard Investments beat its target for the final close of its eleventh fund in the strategy.

ASI has collected $200m of commitments for Aberdeen Venture Partners XI, beating the $150m goal AltAssets revealed it had set in December 2018.

The firm, which manages more than $669bn of assets, said the size of the vehicle had reached a scale “reflective of the current potential opportunity set in the sector and the strategically concentrated nature of the portfolio”.

Kirsten Morin, co-head of global venture capital at the firm, said, “Investment returns in the venture capital industry have been driven by a relatively small number of ground breaking, category-defining technology companies that grew quickly from start-up to global enterprises, creating exponential growth in shareholder value.

“The community of global venture capital funds that are most likely to back such winners remains relatively small and tightknit.

“Our mission is to invest in those venture capital funds that are able to identify the next wave of game-changing technology companies.

“The challenge is that the industry’s top performing early-stage managers are either difficult to find, difficult to diligence and/or – most notably – difficult to access, rendering the strategy ideal for an outsourced fund-of-funds approach.”

ASI is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

The firm has been investing in venture capital funds for 25 years, deploying over $3bn in venture capital commitments in one of the hardest areas of the market to access.

Chris Demetriou, CEO of the Americas for ASI, said, “The continued demand for this strategy from new and existing investors is a vindication of the team’s disciplined approach, depth of experience and strong performance.”

Copyright © 2020 AltAssets



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