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Portfolio Advisors Private Equity Fund III (“PAPEF III”)

Fund Overview

Fund Goal

To provide long term capital appreciation through investment in equity securities that are not freely tradable on a public stock market.


Who Can Invest

Portfolio Advisors Private Equity Fund III is closed to new investors.


Who Might Want to Invest

An investor who:

    • Wants to diversify a conservative portfolio by investing a portion of his or her money beyond the public securities markets and into private equity.
    • Wants the potential for superior long-term returns and is willing to assume a higher level of risk.
    • Can accept the illiquidity inherent in private equity investing.
Strategy and Fund Description

In October of 2005, SEP offered its second private equity fund to investors. Over 30 family members participated in order to maintain their exposure to private equity.

Like Abbott, Portfolio Advisors is a hedge fund-of-funds that diversifies its underlying funds across managers, strategies, vintage year and geography. It invests in buyout, venture capital, special situations and real estate through early, multi-stage and late stage funds. The SEP Board chose to invest in PAPEF’s recommended mix of 25% venture, 50% buyout and 25% special situations. The SEP Board chose not to participate in PAPEF’s real estate investments.

When we invested, the fund was in the final stages of its marketing period and the fund. Thanks to some very advantageous purchases of secondaries (purchases of older fund interests from the original investors), PAPEF III was already profitable.

This fund is mature and is actively winding down. SEP has been receiving cash distributions as the fund sells its remaining investments.