BIRMINGHAM, Mich. – Sensing the growing popularity of private equity among its institutional clients, Munder Capital Management in early July was ready to hit the fund-raising trail with its first fund-of-funds, Munder Capital Partners.
At press time, the asset management firm had completed its private placement memorandum for the $200 million-targeted vehicle, which will invest in United States private equity partnerships. Fifty percent of the fund will be reserved for Munder clients, and the rest of the capital will come from new institutional investors.
“The firm looked at its clients and what the demand was,” said Joe Taylor, director of private equity investments at Munder. Mr. Taylor, a former senior analyst with the Michigan State Treasury, joined Munder in June 1988 to develop its private equity practice.
Munder will invest about half of the fund-of-funds in venture capital partnerships, about one-quarter in buyout vehicles and the remainder in mezzanine and bridge funds, opportunistic co-investments with funds in its portfolio and other direct deals.
Mr. Taylor declined to speculate when the fund would begin to close on capital.
Mr. Taylor, Co-Chief Executives Jerry Seizert and Paul Tobias, Chief Investment Officer Jim Robinson, Chief Financial Officer Terry Garner and Portfolio Manager Peter Hoglund comprise the vehicle’s management team.
Munder Capital Management has more than $52.7 billion under management for clients including Arkansas Teachers Retirement System, Blue Cross & Blue Shield in Michigan, Crain Communications, Kent State University and Miami Fire & Police Retirement.