After closing out a $350 million fund last summer, a local investment company is moving on to the next round.
Private Advisors, a downtown firm that raises money from institutional investors, endowments, pension funds and wealthy individuals, has launched a new fund that will seek to pool $350 million.
As disclosed late last year in Securities and Exchange Commission filings, the fund is dubbed the Private Advisors Small Company Private Equity Fund VII.
Chris Stringer, head of private equity at Private Advisors, said in a brief message last month that the company couldn’t comment on active funds.
This latest fund’s predecessors have been what’s known as fund of funds, which put their money in with other investment funds that buy directly into small businesses. The funds’ investments are aimed at helping the small businesses grow, increasing their value before unloading their ownership stake, ideally at a profit.
Private Advisors’ previous small company fund, appropriately named Private Advisors Small Company Private Equity Fund VI, pooled its money in with 17 fund managers with a goal of investing in 150 to 200 small businesses over about five years. That $350 million pool was capped off last summer.
This latest round shows a $1 million minimum investment is required from any single shareholder.
In addition to its small companies funds, Private Advisors has raised hundreds of millions of dollars in other funds over the years, according to SEC filings. They invest in natural resources and other niche segments.
Private Advisors was founded in 1997 by Lou Moelchert, who for decades managed University of Richmond’s endowment. The firm became a subsidiary of financial giant New York Life in 2010, when New York Life purchased a 60 percent stake.
Private Advisors employs dozens in Richmond at its office at Riverfront Plaza. It also has offices in New York, Cleveland and Austin.