Traveller Capital Advisors has announced the successful closing of its fourth fund, raising $44m in capital commitments. The firm focuses on the secondary market acquisition of interests in private equity funds with an emphasis on small-balance transactions.
Its first three fund vehicles have seen the acquisition of approximately 100 LP interests, and the oversubscription of Fund IV will allow the firm to expand its pursuit of opportunistic acquisitions of both single LP positions and portfolios of LP positions.
The new fund has received commitments from a diverse group of investors, including family offices, sophisticated high-net-worth investors, and RIAs.
Drew Crichton, the founder of Traveller Capital Advisors, highlighted the compelling opportunity set within the smaller end of the secondary market. He also expressed his gratitude towards investors who have been with the firm for multiple funds, stating that their long-term perspective and belief in the outlook for the strategy drove a historically strong raise.
Traveller Capital Advisors aims to create portfolios diversified across fund managers, vintages, sectors, strategies, and geographies within the US. The firm has completed two transactions within Fund IV to date.
Crichton emphasized the importance of building long-term relationships and reputation as an established investor in their target market, helping to create unique sourcing capabilities to identify small-balance interests. The secondary market is an area of the market that is less efficient, so relationships certainly matter.