Pictet’s Technology Fund II has secured over $200m, building on its strategy of targeting venture capital and buyout opportunities in key technology sectors, Pictet Alternative Advisors upon the fund’s final close on 23 September 2024. The fund, structured as a Sicav-Raif and domiciled in Luxembourg, is Pictet’s second technology-focused thematic private equity vehicle.

Managed by Stanislas Chanavat, Chuang Zhu, Nicolas Schwyn and Jacqueline Xu, the fund will continue to pursue investment opportunities in core technology segments such as enterprise software, data and AI, cybersecurity and fintech. The strategy is designed to back venture capital, growth equity and buyout technology fund managers, creating a diversified portfolio of primary funds and co-investments alongside those managers. PAA has sought to position this second fund in alignment with a trend in technology investments, with a particular focus on enterprise-level technologies that have demonstrated growth potential.

Stanislas Chanavat, principal of thematics private equity at PAA, highlighted two key developments that coincided with the launch of the second fund in late 2022. First, the significant correction in asset prices that year created attractive entry points in the technology market, offering opportunities for lower valuations. Chanavat noted that such market conditions have historically fostered the emergence of exceptional technology companies. Second, he pointed to the introduction of ChatGPT in 2022 as a watershed moment, underscoring the broader potential of AI. He stated that PAA had already been investing in AI technologies for a decade, recognising their transformative impact on society and the economy.

Pierre Stadler, head of thematics private equity at PAA, noted that technology was the inaugural thematic strategy for Pictet, and the firm remains optimistic about the innovation and growth potential seen in portfolio companies within this theme.

With the close of Technology Fund II, Pictet’s thematic private equity franchise has now secured over $1bn in total capital commitments, the firm stated. This capital has been raised from a combination of institutional and high-net-worth investors. Since its first foray into private equity in 1989, Pictet has invested in more than 300 private equity funds.