The brief will focus on making commitments to leading and emerging European general partners targeting acquisitions in the €10m to €250m enterprise value range in western Europe.

Six per cent of the New York State Common Retirement Fund is invested in private equity holdings which have returned 8.12 per cent in the last five years.

Private equity makes up the bulk of the Common Retirement Fund’s alternative investment portfolio. Strategies include venture capital funds, leveraged buyouts and expansion capital, special situation funds such as mezzanine finance and distressed debt.

According to the office of the New York State Comptroller, the funds of funds strategy is designed to improve overall diversification of the alternative investment portfolio.

Access Capital Partners manages a total of €900m through its own funds of funds as well as mandates from specific clients. It focuses only on Europe where it specialises in mid-market buyouts and technology venture capital funds of funds.

•  Private equity firms raised more capital during 2004 than in previous years, according to a report by Mercer Investment Consulting.

But Mercer warned that venture capital fund sizes are shrinking dramatically, making access to top funds a critical issue. However, the report said that European buy-out funds might be unaffected by this trend.

HS