Having just closed its 10th secondary fund at $2.6 billion, Pomona Capital is one of a number of secondary shops riding a wave of growing interest.
Pomona has raised $4 billion across its platform since 2020, fueling the firm’s growth to a 23% CAGR in the past five years.
Pomona Capital X was oversubscribed and approximately 50% larger than its predecessor fund, Pomona Capital IX, which collected nearly $1.8 billion in 2018. The fund’s strategy is to sole for both growth and value in secondaries investing with enhanced liquidity and a lower risk profile. With $16 billion in aggregate capital commitments the firm has nearly three decades of experience providing efficient liquidity solutions for investors.
“What differentiates Pomona in today’s market is our targeted approach and ability to be selective,” said CEO Michael Granoff in a statement. “We are not buying a slice of the generic secondaries market and our focus on purchasing high quality, diverse assets with identifiable near-term liquidity at a measured investment pace is well-suited to the current environment.”
The firm works with investors and assets globally and also offers a retail product — the Pomona Investment Fund. That fund saw asset growth of $400 million over the last two years as retail demand for private equity continues.
Pomona also manages a $5.8 billion business making primary investments in private equity funds as a strategic complement to its secondaries business. Collectively, Pomona has invested in partnership interests in approximately 750 private equity funds, diversified across the spectrum of private equity, with underlying investments in over 10,000 companies since the firm’s founding in 1994.