ODDO BHF announces the successful final closing of its oversubscribed Secondaries Fund II at € 715 million

Paris, Frankfurt, Düsseldorf, Luxembourg, 16 May 2024

The Private Assets team of ODDO BHF held a €715 million final close for its sophomore secondaries fund in early May, beating its €500 million target. “ODDO BHF Secondaries Fund II stands out as a remarkable fundraising achievement amidst a challenging market environment”, says Anne Bismut, Global Head of Private Assets at ODDO BHF AM.

ODDO BHF Secondaries Fund II represents the firm’s largest private equity fund to date, receiving strong support from both existing and new investors, be it high-net-worth individuals or institutionals. “We are extremely grateful to our investors for their trust and honored to have them on board for this exciting new chapter of our secondaries business”, says Anne Bismut, adding “With this second vintage, we continue our strategy of addressing all types of secondary transactions globally, with a primary focus on mid and large cap assets.”

ODDO BHF Secondaries Fund II is three times larger than its predecessor, which raised €240 million in 2020. According to ODDO BHF AM’s analysis, the secondaries market has experienced tremendous growth over the last decade driven by a healthy primary market, an increasing need of liquidity from limited partners, and innovative new types of transactions such as continuation funds. “Although we tend to purchase large cap assets, this fund operates at the small end of the market. We are fortunate to have this new amount to invest to address a fast-growing quality deal flow”, says Jérôme Marie, co-Head of Secondaries at ODDO BHF AM.

To start building up or accelerate an allocation to private equity, secondaries funds could be a good opportunity to do so, according to ODDO BHF AM. “Typically, they could offer potentially attractive risk-adjusted returns and diversification, as well as shorter durationDurationDuration is a measure of sensitivity that describes the average time in which capital is tied up in a fixed-income security. It is measured in years. Duration is shorter than residual maturity because the amortization period is shortened by interim interest payments on the invested capital. For zero-coupon bonds, duration is equal to residual maturity, as interest payments are implicitly made only upon maturity. They are therefore particularly sensitive to interest rates.. They can also offer an accelerated return on investment given the discount we have already secured and expect to receive on our future transactions”, concludes Anne Bismut.

The fund incurs risks, including the risk of loss of capital. The fund is closed, and no new investors can subscribe to the fund.