Chicago-based fund-of-funds manager RCP Advisors has just launched its seventh vehicle, RCP Fund VII LP, with a $300 million target.
The predecessor Fund VI closed in May of this year with $289 million, below its $350 million target. RCP Advisors specializes on investments in small to mid-market U.S. buyout funds. Typical funds the firm backs have total capitalizations of about $400 million and are earmarked to acquire companies for $10 million to $250 million. The firm intends to use the capital collected for Fund VI to make 10 to 12 commitments of $20 million to $30 million per underlying fund.
The firm’s fifth vehicle targeted $250 million, but the firm ended up raising $355 million in 2007.
Buyout shops backed by RCP Advisors include Arsenal Capital Partners, which targets specialty industrials, health care and financial services; nursing home specialist Centre Partners; Clearview Capital, which invests in manufacturing, services and consumer products; turnaround firm KPS Capital Partners; financial services specialist Lovell Minnick Partners; Sentinel Capital Partners, which focuses on the consumer products, food, franchising, manufacturing and service sectors; Sorenson Capital, which sponsors buyouts in the western United States; and consumer products-focused TSG Consumer Partners.
RCP Advisors, founded in 2001, manages more than $1.5 billion in committed capital. Backers include Swedish national pension fund AP3; Chicago Policemen’s Annuity & Benefit Fund; Florida State Board of Administration; Indiana University; and the UCLA Foundation.