Coller Capital has raised $2.4bn for a landmark structured secondaries vehicle, securing backing from institutional heavyweights Barings and Ares Management in what is being described as the largest transaction of its kind in the secondaries market to date, according to a report by Bloomberg.
The vehicle, which will acquire stakes in private equity and private credit funds from existing limited partners, underscores growing investor appetite for innovative fund finance solutions as liquidity remains constrained across private markets.
According to a statement from Coller, Barings acted as the primary investor in the senior debt tranches of the structured vehicle, while Coller and Ares will retain the first-loss equity positions — aligning interests with underlying portfolio performance.
Structured secondaries products like this one repackage future fund cash flows into bond-like tranches with varying risk and return profiles, appealing to institutional investors such as insurers and pension funds. These investors often favour rated instruments over direct fund interests, due to more favourable capital treatment under regulatory frameworks.
The deal comes amid a broader acceleration in fund finance activity. As distributions to LPs have slowed, GPs are increasingly turning to structured solutions — including rated feeders and collateralised fund obligations — to unlock liquidity and manage portfolio duration.
This latest transaction marks another milestone in Coller Capital’s evolution as a secondaries specialist with a growing focus on fund finance. The firm, which manages over $40bn across private equity, credit, and other private market strategies, is among a growing group of managers bringing scale and innovation to the secondaries market.
The sector continues to attract attention from asset managers seeking to establish a foothold in this fast-evolving space. Just last week, Bayview Asset Management announced senior appointments to build out a new fund finance platform, reflecting heightened competition and investor demand.
