Portfolio Advisors targets $400m for its sixth Asian fund

The fund has garnered over $170m so far and will target special situations, secondaries and private equity investments.

Portfolio Advisors, a Connecticut-headquartered alternative investment firm, plans to raise $400 million for its Asia Fund VI, according to a source familiar with the fund’s strategy who requested anonymity.

Its Asia Fund VI plans to invest in special and distressed situations, secondary opportunities, and private equity in the region. The vehicle had garnered over $170 million as of 13 April, according to an SEC filing.

Its predecessor, Portfolio Advisors Asia Fund V was officially launched on 15 October 2015. It had raised over $201 million as of April 13, the filing shows.

The firm mandated CrownRock Partners, a Seoul-based investment advisory firm, Greenstone Group, a Dubai-based advisor, and BC Capital (formerly called Bhargava Wealth Management), a New Jersey-based capital formation advisor, for the Asia Fund V fundraising, another filing shows.

The firm raised $740 million for its second mezzanine debt fund, the Direct Credit Opportunities Fund II (PADCOF II), according to the firm’s statement released on 18 April 2017.

PADCOF II aims to provide second lien loans and senior subordinated notes to US mid-market firms. The vehicle also looks to include recapitalisations or growth equity-type transactions. The firm also manages a fund-of-funds vehicle, Portfolio Advisors Credit Strategies Fund.

Portfolio Advisors’ direct credit platform is led by the former DLJ Investment Partners team which was acquired by the firm from Credit Suisse in 2013, according to the source. The firm launched its Direct Credit Opportunities Fund series after the acquisition.

Its assets under management were worth over $20 billion as of 19 January. The firm acts as investment consultants for institutions, including City of Philadelphia Board of Pensions & Investment, City of Zurich Pension Fund, Los Angeles Fire & Police Pension System, North Carolina State Treasury, Pennsylvania Public School Employees’ Retirement System and Utah Retirement System.