Wafra Inc has raised $1.5 billion for its fourth flagship fund which will look to acquire minority stakes in alternative asset managers, including private equity firms, according to a report by Reuters.

The report cites Daniel Adamson, a Wafra senior managing director, as confirming that Capital Generation IV will target “lower middle-market” firms with less than $3 billion in assets under management.

Backing for the new fund came from a consortium of institutional investors from across North America, Europe and the Middle East, and part of a joint venture called Capital Constellation, which launched in 2018 and has previous invested about $3 billion in Wafra’s existing three funds that invest in alt asset managers.

Read more: Private Equity Wire