– Targeting a niche opportunity in the slow fundraising environment, negatively impacting even strong firms with impressive track records.
– Focus on Seasoned Primaries: Funds 25%-50%+ committed at final closing, resembling traditional secondaries.
– Advantages of Seasoned Primaries: Similar to traditional secondaries but with higher cash-on-cash returns. Asset selection advantage over blind pools. Reduced J-curve compared to traditional primary investing.
– Fund Structure: 2-year investment period to further minimize the J-curve. Focus on small and middle-market funds, an attractive market segment.
– Current Fundraising Environment: Over 70% of small and middle-market funds spend a year or longer fundraising, creating greater opportunities.
– Causeway led by Managing Partner Larry Lichter, former co-founder of Lexington Partners and leader at Newbury Partners.
– Newbury raised and invested over $6 billion across five secondary funds before its sale to Bridge Investment Group in 2023.
– Partner Alex Maloney and team will support Lichter at Causeway.
