SL Capital closes secondaries fund on $428m

Kenny Wastell
30 October 2017

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SL Capital has held a final close for Secondary Opportunities Fund III (SOF III) on $428m, surpassing its $400m target.

The total is 47% higher than the $291m raised by its predecessor fund, which held a final close in May 2015.

The development comes a year after the vehicle held a first close on $213m and brings the total amount raised by SL Capital's secondaries programme to more than $900m.

According to unquote" data, the vehicle commands a 0.75% management fee on invested capital, with reductions on commitments over $25m. It will charge 10% in carried interest above a 10% hurdle and has a 10-year term, extendable by three years.

For a detailed breakdown of SOF III, including details on the distribution waterfall, visit the dedicated profile on unquote" data

Investors
SOF III raised commitments from 31 LPs, including public and corporate pension schemes, multi-family offices and high-net-worth individuals. According to a statement, 60% of the vehicle's commitments came from UK investors, with the remaining 40% coming from North American LPs.

Investors include San Bernardino County Employees' Retirement Association, Dorset County Pension Fund, Surrey County Pension Fund, Cumbria Local Government Pension Fund, Telus Private Equity Corporation, Marlborough Investments Holdings and Bedfordshire Pension Fund, according to publicly available documents.

Investments
The fund invests in secondary transactions in funds-of-funds, secondary funds and direct funds. According to a statement, it will target niche and less competitive areas of the secondary market.

People
SL Capital Partners – Stewart Hay (head of institutional client solutions); Patrick Knechtli (head of secondaries).