Chicago-based fund manager RCP Advisors said Thursday that it has closed $425 million for RCP Secondary Opportunity Fund II. The amount raised for RCP’s secondary fund exceeded the company’s target of $300 million. RCP SOF II will focus on investing in established private equity funds through secondary market purchases.
Chicago, IL – July 31, 2013 – RCP Advisors, a leading independent sponsor of private equity funds-of-funds, secondary funds, and co-investments, focused on North American lower middle market buyouts, announced the final closing of RCP Secondary Opportunity Fund II, LP (“RCP SOF II”). The new fund closed on $425 million in commitments, exceeding its target of $300 million.
“Secondary funds are the focus of many investors’ attention these days. The positive market reaction to RCP Secondary Opportunity Fund II shows that our differentiated focus on the small buyout fund market resonates with investors,” says Charles Huebner, Managing Principal and Chief Investment Officer at RCP Advisors. “They see great opportunity in this market niche despite increased competition in secondaries overall. The strong performance to date of our earlier secondary fund as well as the unique market opportunity allowed us to retain the majority of our existing LPs and attract a high quality roster of new investors. We are pleased with this success during the fundraising phase and look forward to a successful investment period for RCP SOF II.”
RCP SOF II intends to acquire interests in established private equity funds through secondary market purchases that offer the potential for capital appreciation and investment returns and that focus on leveraged buyout transactions. RCP Advisors seeks individual fund investments representing commitments of between $3 million and $30 million for RCP SOF II. This commitment size is matched to the natural commitment sizes commonly seen in lower middle market funds.
RCP Advisors currently manages over $3.0 billion in committed capital in over 150 private equity investments across the Firm’s funds-of-funds as well as its secondary funds and co-investment fund. RCP Advisors believes that it is one of the largest funds-of-funds managers exclusively focused on the lower middle market buyout segment of the private equity market. RCP Advisors was founded in 2001 and is headquartered in Chicago.