Savano Capital Partners, a venture and direct secondaries firm, is looking to raise what would be its largest fund yet.
The Baltimore-headquartered manager is seeking $250 million for Savano Capital Partners IV, according to data from the MWRA Employees’ Retirement System. It is unclear when the fund launched.
The firm registered a Form D filing with the US Securities and Exchange Commission on 22 May.
Fund IV is seeking a 25 percent net internal rate of return and a 2.5x multiple, according to the MWRA documents.
The management fee during the investment period is 2 percent. After, it will decrease by 0.2 percentage points annually with a floor of 1 percent. The fund’s carried interest is 20 percent over an 8 percent return.
It is unclear how much capital the firm had raised as of mid-May – the period around which MWRA’s documents were compiled.
Savano focuses on providing liquidity to founders, angel investors, employees and early investors, according to its website. Its transactions often include primary capital.
Fund IV is looking to raise significantly more capital than Fund III, which raised $157 million and closed in 2022, according to data from affiliate title Private Equity International. That fund launched in 2020 with a $150 million target.
The size of the VC and direct secondaries markets is difficult to ascertain. For LP portfolios of venture capital fund stakes, this accounted for around 8 percent of the $111 billion in secondaries market trading last year, according to data from Greenhill.
MWRA manages around $690 million for Water Resources Authority retirees in the state of Massachusetts and had engaged NEPC to find a private equity secondaries manager of closed-end funds.
Savano did not return a request for comment.