Alternative Investment Management Seeks $75M for New Fund of Funds

Laura Kreutzer
July 20, 2015

Alternative Investment Management, a New York firm that raises capital from wealthy investors to back hedge funds or private equity funds, is seeking $75 million for its newest private equity fund of funds, according to marketing materials seen by LBO Wire.

The firm plans to commit Thirteen Partners Private Equity 4 LP to a portfolio of nine to 12 private equity funds with an emphasis on small and midcap buyout funds diversified across geography, size and vintage year.

The firm committed the vehicle's predecessor, Thirteen Partners Private Equity 3 LP, to 11 underlying funds, according to the marketing materials. Among them are funds managed by midmarket buyout firms Endeavour Capital, Lovell Minnick Partners , SCF Partners and Wynnchurch Partners and growth equity funds managed by Stripes Group and Viola Private Equity.

The firm is proposing a scaling management fee for the new offering that is based on the amount of assets that the firm manages for the investor making the commitment. The fees range from 1% for assets of less than $2 million down to 50 basis points for assets of more than $5 million, according to the marketing materials.

Alternative Investment Management markets its funds of funds to accredited investors and qualified clients, typically those with a net worth of $2 million or more. The firm was initially formed to manage private investments for a select number of families and individuals and began offering products to outside investors in 2003. It manages about $1 billion in assets across private equity funds of funds and multimanager hedge funds.

Partner Jonathan Harris serves as chairman of Alternative Investment Management's investment committee.

Write to Laura Kreutzer at Follow her on Twitter at @LauraKreutzer.

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