Pomona Capital Launches New PE Fund For Accredited Investors

May 12 2015 | 12:21pm ET

Pomona Capital has announced the launch of its Pomona Investment Fund, a vehicle the company hopes will provide accredited individual investors with efficient access to private equity investing. 

The new fund will feature significantly lower investment minimums than the average PE fund, which have historically been restricted to large institutional investors.

Accredited investors can participate in the fully registered closed-end fund with as little as $25,000. Voya Investments Distributor LLC is handling distribution for the fund, which also has an investor-friendly tax reporting structure.

Investments in the fund will be primarily focused on secondary interests in seasoned PE funds, with a supplementary interest in supplementary focus on primary and direct commitments. 

Similar to Pomona’s institutional fund offerings, the fund’s strategy seeks the long-term capital appreciation associated with private equity but with a lower risk profile. By concentrating on secondary private equity, the fund hopes to minimize the blind pool risk and the j-curve often associated with primary private equity investments.

“To date, liquidity and other structural and regulatory challenges have made it more difficult for individuals to gain exposure to alternative assets,” said Michael Granoff, CEO of Pomona Capital, in a press release. “As an alternative investment, Pomona Investment Fund can complement and potentially improve the risk/reward characteristic of an investment portfolio with a user-friendly structure that provides transparency and investor safeguards.”

Pomona Capital was founded in 1994 and has $8.1 billion in capital commitments across eight flagship secondary funds and separate accounts. It manages a series of secondary, primary and co-investment strategies for a global group of over 350 sophisticated investors and has invested more than $3.3 billion in partnership interests in more than 600 private equity funds.

The company was an early pioneer in the secondary PE market, providing liquidity to investors seeking to sell, reduce the number of, or re-deploy private equity assets within their private portfolios. 

Pomona is the private equity platform of Voya Investment Management, which manages more than $200 billion for affiliated and external institutions and investors. 

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