Funds of funds get set to invest after year on the sidelines

European funds of funds made almost no investments in 2009 but hope to make more next year, according to an INREV survey.

The survey’s 16 fund-of-fund manager respondents, which run 30 funds with target equity of €10bn, made only five equity investments, totalling €75m, by the time of the survey at the end of September. In 2008 they made 50 such investments, totalling €548m, and the year before 97, totalling €2.2bn.

But their ambition is to seek more opportunities in both the primary and secondary market. “They see opportunities next year for un-invested capital, with a focus on potential secondary market deals as well as 2010-vintage funds,” said Lonneke Löwik, INREV’s research director. Löwik said this year’s inactivity was partly down to a need to focus on existing investments.