Siris Capital Group, the private equity firm that spun out of SAC Capital earlier this year, is expecting to hold a first close of around $150 million sometime in September, two sources familiar with the fundraising campaign told sister magazine Buyouts.
Commitments are expected from several limited partners with programs dedicated to finding promising new private equity firms. Potential investors include the Teachers’ Retirement System of the State of Illinois, which has pledged $45 million, as well as Connecticut Retirement Plans and Trust Funds, Parish Capital and entities advised by Credit Suisse’s customized fund group.
Siris Capital executives are hoping to raise a total of $400 million in commitments for the fund, Siris Partners II LP. Greenhill & Co. is helping to raise the fund.
The firm was founded by Frank Baker, Peter Berger and Jeffrey Hendren, who left SAC Capital, a hedge fund managed by controversial investor Steve Cohen. Cohen was expected to be an investor in the fund, but has since distanced himself from Siris Capital for fear of tainting its fundraising due to allegations of insider trading at SAC, as Buyouts reported in August.
Prior to joining SAC in 2007, the trio worked closely for 10 years at the buyout firm Ripplewood Holdings LLC. Together, they have invested a total of almost $1.2 billion—$600 million under SAC Capital’s banner, and $576 million under Ripplewood. They have since added two other investment professionals for Siris.
The firm targets complex deals, including turnarounds, in the technology, telecommunications and health care services sectors. The firm has yet to strike a deal; however, once a firm holds a first close on fundraising, it can use commitments from its investors to execute transactions.
Bernard Vaughan is a senior editor at Buyouts Magazine. Any opinions expressed here are entirely his own. Follow him on Twitter @BVaughanReuters. Follow Buyouts tweets @Buyouts. For information on how to subscribe, contact Greg Winterton at firstname.lastname@example.org.