Searchlight closes third fund on $3.4bn

Announced in March 2019 with a $2.75bn target, the fund held its first close in July 2019 on its target. It also held an interim close on $3.03bn in May 2020. The fund is domiciled in the Cayman Islands.

Searchlight II closed on $1.9bn in December 2015 and is now fully deployed. Its LPs included Canada Pension Plan Investment Board (CPPIB) and the Florida State Board of Administration, as well as several European LPs, such as SwanCap Partners, with a commitment of $10m, and Lombard Odier, with a commitment of $22.5m.

Latham Watkins provided legal advice for Searchlight III.

Investors
LPs in the fund include the California State Teachers' Retirement System (CalSTRS), CPPIB, Florida State Board of Administration and the Massachusetts Housing Finance Agency Retirement System, each with commitments of, or more than, $150m, according to Unquote Data.

Smaller commitments have also come from Los Angeles Water and Power Employees' Retirement Plan and the Texas Municipal Retirement System.

Investments
Searchlight III has a mandate to pursue complex transactions including distressed debt purchases, post-reorganisation equity purchases and bankruptcy reorganisations, followed by debt-for-equity swaps, minority PE investments, leveraged buyouts, corporate partnerships, public equity purchases, and subordinated debt instruments with equity optionality, in both western Europe and North America.

The new fund will have an average equity investment in the range of $100-200m, making approximately 15 total investments. The anticipated holding period for each investment is around five years.

The fund has deployed 30% of its committed capital, making investments in insurance broker Global Risk Partners and aerospace company Groupe Latécoère.

People
Searchlight Capital Partners – Oliver Haarmann (founding partner).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Funds
• Buyout
• Credit/Special Situations
• UK / Ireland
• United Kingdom
• Latham & Watkins