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Headway hits market with new fund

Direct secondaries private equity investor Headway Capital Partners has launched a new fund, with a hard cap of around €280m.

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Secondaries private equity investor Headway Capital Partners has launched a new fund, with a hard cap of around €280m. 

The team, which spun out of secondaries giant Coller Capital in 2004, filed documents with the Securities and Exchange Commission in the US, detailing a new fund with a $373m (€281.3m) ceiling. 

The firm hopes to hold a first close in the next quarter, said somebody with knowledge of the fundraising. 

Headway buys LPs' fund stakes and also wholesale portfolios from sellers in need of liquidity. 

One source of deal flow for direct secondaries firms is banks, but until now they have been selling larger companies piecemeal.

But some are expecting banks to start looking at moving smaller assets off their books in bulk, creating an opportunity for this niche of private equity. 

By offering a convenient single transaction for multiple businesses, direct secondaries firms can obtain discounts on portfolio deals.