Overview
Pomona Capital was founded in 1994 and has been a dedicated participant in the private equity secondary market for over 30 years. The firm is based in New York and manages approximately $10 billion in assets across secondary funds, primary fund-of-funds, and co-investment vehicles.
Pomona’s secondary strategy involves purchasing existing limited partnership interests in private equity funds from sellers who need liquidity, want to rebalance their portfolios, or are exiting certain asset classes. The firm underwrites each secondary position by analyzing the underlying fund’s portfolio companies, the GP’s track record, and the purchase price relative to net asset value.
The firm also maintains a primary fund-of-funds business and makes co-investments alongside GPs in its portfolio. This multi-strategy approach allows Pomona to deploy capital across different entry points in the private equity lifecycle, providing its investors with diversified exposure and multiple return drivers.
How to Approach
GPs interact with Pomona Capital in two primary contexts. First, as a secondary buyer, Pomona may acquire LP positions in a GP’s existing funds. In these situations, GPs benefit from having a knowledgeable, institutional-quality investor replace a departing LP. Second, Pomona’s primary fund-of-funds team evaluates new fund commitments and co-investment opportunities.
For GP-led secondary transactions such as continuation vehicles or tender offers, Pomona is an experienced participant and can serve as a lead or anchor investor. GPs considering a GP-led process should engage Pomona early in the structuring phase. For primary fund commitments, the firm evaluates GPs through a standard institutional due diligence process focusing on track record, team stability, and strategy differentiation.
Frequently Asked Questions
What is Pomona Capital's primary investment strategy?
Pomona Capital focuses on private equity secondary transactions, purchasing existing LP positions in private equity funds at negotiated discounts. The firm also makes primary fund commitments and co-investments. Pomona's secondary strategy provides investors with portfolio diversification, accelerated capital deployment, and the potential for enhanced returns through purchase price discounts.
What types of secondary transactions does Pomona Capital pursue?
Pomona Capital pursues a range of secondary transaction types including traditional LP interest purchases, GP-led continuation vehicles, structured secondaries, and portfolio sales. The firm has experience acquiring positions across buyout, venture capital, real estate, and other alternative asset classes. Transaction sizes typically range from $5 million to over $200 million.
How does Pomona Capital source secondary deal flow?
Pomona Capital sources secondary transactions through intermediaries, direct relationships with LPs looking to rebalance their portfolios, and GP-led processes. The firm's three decades of market presence give it access to a broad range of deal flow, including off-market transactions where sellers prefer to work with experienced, discreet buyers.
