NEW YORK – Relying on relationships created through its secondary interest business, Pomona Capital recently held a $97 million first close on its second fund-of-funds.
Launched last September, Pomona Partnership Holdings II received commitments from an investor group that includes BancBoston, Citigroup, Group Worms, Massachusetts Institute of Technology and Global Asset Management, among other institutions and endowments, said Michael Granoff, chief executive at Pomona.
Commitments from the new fund will follow a 70%/30% carried interest split between venture funds and other private equity vehicles.
“We are putting together a varied portfolio … because the data we have seen suggest that buyouts and venture capital are counter-cyclical,” Granoff said.
To date, Fund II has committed to 10 funds, including Alloy, Audax Group, @Ventures, Doll Technology, Hellman & Friedman, Infinity Capital, Polaris, Sevin Rosen Funds, Silver Lake Partners and Weiss Peck & Greer. Granoff said the firm gained access and inside knowledge on many of these funds through its activity in the secondary interest market.
Pomona Partnership Holdings I closed on $50 million in 1997 and invested in 11 funds, including @Ventures, Sevin Rosen, Clayton, Dubilier & Rice, Warburg Pincus, the Sprout Group and Spectrum Equity Investors.
The firm’s inaugural vehicle has realized 13 liquidity events, including nine initial public offerings and four acquisitions.