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SK Capital raises $1 bln with Fund IV

SK Capital Partners has closed its fourth fund on its $1 billion hard cap after only five months in the market, James Marden, managing director at SK Capital, told peHUB.

UBS Securities was placement agent on the fundraising, which came in at double the size of its predecessor, $500 million Fund III, which closed in 2011. Performance numbers for Fund III were unavailable.

“The increase in fund size doesn’t change anything,” Marden said. ”We are size agnostic with respect to deal size. We stay disciplined by sticking to what we know and targeting investments where there are a number of opportunities to improve growth or operations.”

Marden added: “The bigger fund allows us to participate in deals where [in the past] we didn’t have sufficient amount of capital to participate in.”

SK targets investments in specialty materials, chemicals and healthcare. The firm will continue to be led by Managing Directors Marden, Barry Siadat,Jamshid KeynejadJack NorrisAaron Davenport.

Fund IV is not yet activated, Marden said, but should start investing early next year.

SK Capital increased the amount of deal fees it shares with LPs in Fund IV from 80 percent in the prior fund to 100 percent, Marden said. SK Capital also is kicking in an about 5 percent GP commitment to the fund, he said.

SK’s Fund I and Fund II were special purposes vehicles dedicated to the firm’s first two deals, Buyouts reported. SK Capital was formed in 2007.

In October, Archroma, a specialty chemicals business for the textile, paper and emulsions sectors backed by SK, agreed to acquire the global textile chemicals business of BASF.

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