PE Key Trends Blog

Palico in Focus - The Appeal of “Final Call” Funds

Oct 26, 2016 3:57:55 PM

Tags: Palico In Focus, V2

Some 17 percent - or 68 - of Palico’s 404 fundraising data rooms are devoted to opportunities that are in what we refer to as “final call” mode. Final call funds have held at least a first close and are aiming for one more round of capital commitment before ending fundraising. These vehicles generate exceptional interest and investment from the limited partners who are members of Palico’s private equity fund marketplace. Listing on Palico’s online marketplace is an efficient means for managers in the fundraising homestretch - particularly those looking to equal or surpass their fund target size - to find new limited partners of all types, in all regions of the world.

Funds that Have Attracted Capital and Made Investments

Final call funds are viewed five times more frequently on average than other fundraisings in Palico’s marketplace. The reasons for this are simple: Final calls have already won capital commitments, a key confidence builder for prospective investors; often they’ve made investments, and so are easier to evaluate than early-stage vehicles; and they’re on the verge of closing definitively, giving investors incentive to prioritize their research in order to decide whether or not to commit.

Matching Up Investors and Managers Efficiently

Creating a final call data room that can be viewed by all of Palico’s more than 2,600 accredited investors is the same as it is for any other fundraising. After vetting by Palico’s compliance team, general partners set up data rooms controlled exclusively by them. Detailed profile information, as well as everything from investment teasers to private placement memorandums, is easily uploaded. Emails are sent to all accredited Palico investors with declared interests matching the opportunity. Managers choose whether or not to grant investors data room access.

Navigating Private Equity in the 21st Century

In an increasingly complex private equity universe, Palico’s online marketplace helps investors commit to the right opportunities and helps managers connect with the right investors. Whether members are connecting over first-time funds, funds in final call mode, secondaries, or another type of PE investment vehicle, Palico makes the process of discovery and engagement easier. It’s private equity for the 21st century.