Standard Life Defection Update

Earlier today, peHUB reported that the entire North American private equity team of Standard Life Investments had quit. The original piece included just a brief comment from SLI, which seemed to have taken a bunker mentality (although it has since removed the team bios from its website).

But a few hours seems to have lossened its lips a bit, and also prompted it to pull the North American team bios from its website. Spokesman Richard England emailed over the following, in response to my questioning the viability of a $300 million North American fund-of-funds announced back in June:

“As Manager of the US fund of funds partnerships, SL Capital Partners LLP has taken immediate steps to ensure the effective management and monitoring of the US portfolio by experienced members of our private equity team based in Edinburgh. Given that $275m of the $300m portfolio has already been committed to funds in the U.S., we believe we have sufficient resources to monitor this small portfolio of investments without this being a distraction from our European private equity activities.”

I followed up by asking if SLI was concerned about any LPs enacting a keyman provision to pull capital commitments. The answer was no: “We do not anticipate losing any of our existing clients.”