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HRJ Playbook: Raise $500M For Global LBO FoF

Firm: HRJ Capital

Fund: HRJ Global Buyout III

Target: $500 million

Placement Agent: E.L.K. Capital Advisors

HRJ Capital, famous for its roster of football-star founders, is out trying to score $500 million for a global buyout fund of funds, one of several funds of funds that the firm has recently launched.

Placement agent E.L.K. Capital Advisors, founded by Randall Winters in 2005, is helping to raise the fund. HRJ Capital is also working with a placement agent in Europe.

Though not fully closed, HRJ Global Buyout III has already been partially deployed, said a source close to the matter. Names of funds it has backed couldn’t be obtained, but HRJ Capital has in the past backed some of the biggest names in the LBO business: Apollo Management, Bain Capital, The Blackstone Group, J.W. Childs Associates, Kohlberg, Kravis Roberts & Co., Perseus Capital and Texas Pacific Group. It also has backed MBK Partners LP, a South Korea-focused fund raised by a team of former pros from The Carlyle Group.

The fund will have a first close around the end of March. It is broken into three geographic areas, Europe, Asia and the United States. Each of those groupings will be seeking commitments of $150 million to $200 million. This fund will likely invest in more middle market funds than previous HRJ Capital funds have, since most of the largest firms have recently raised capital, said a second source familiar with the situation.

Meantime, the firm is also out raising new real estate, venture capital and special opportunities funds of funds. It also closed its HRJ Growth Capital II fund four months ago at $211 million.

Limited partners in its latest buyout fund include a number of college endowments, such as Notre Dame University and University of North Carolina. Foundations that have committed to HRJ Capital in the past include the Edgerton Foundation, the Ford Family Foundation, Henry J. Kaiser Family Foundation and the Sierra Health Foundation.

Formerly known as Champion Ventures, HRJ Capital was co-founded in 1999 by San Francisco 49ers four-time Super Bowl winning quarterback Joe Montana, along with two teammates, offensive lineman Harris Barton and safety Ronnie Lott. The firm takes its name from their first initials. Montana has since left the firm but is listed on the firm’s Web site as an “Equity Partner.”

Duran Curis, formerly of LGT Capital, heads up HRJ’s buyout practice. Darren Wong, who joined from GIC Special Investments, the private equity arm of the Government of Singapore Investment Corp., leads its venture capital practice.

The firm has offices in Woodside, Calif, New York and Chicago. Director of Finance Cory Pavlik did not return a call.—M.C.