Debut Fund Expected To Close At $600M

Siris Capital Group expects to close its debut fund at $600 million around Thanksgiving, $200 million more than its target, Buyouts reported yesterday, citing a source.

The firm has raised $370 million so far and is expecting another close in September that would take it to as much as $450 million, which would exceed its $400 million target.

The firm has already effectively stopped marketing the fund and is instead finalizing commitments from investors that will take it to the $600 million hard cap, the source said.

The fund employs the investor-friendly waterfall method of distributing carried interest, a practice common in Europe in which general partners don’t get to share carry until returning at least all invested capital.

The New York-based firm has already locked up commitments from several blue chip institutional investors, including the New Jersey Division of Investment, the New York City Employee Retirement System, the Employees Retirement System of Texas, and the New York State Common Retirement Fund, which committed $20 million.

Co-Founders Frank Baker, Peter Berger and Jeffrey Hendren formed Siris Capital in 2011 after leaving SAC Capital, the hedge fund where they operated as a private equity offshoot. Prior to that, they worked closely for 10 years at a buyout firm, Ripplewood Holdings LLC. Another spin-out from Ripplewood, One Rock Capital Partners LP, is also in the market, seeking $250 million for its debut fund.

Siris Capital targets deals, often in turnaround situations, in the technology, telecommunications and health care services sectors.

Executives at Siris Capital did not immediately respond to a request for comment.

Bernard Vaughan is a senior editor at Buyouts Magazine. Follow his tweets @BVaughanReuters. Follow Buyouts tweets @Buyouts.

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