RCP Nearing Close Of $350M Fund of Funds

Firm: RCP Advisors

Fund: RCP Fund V

Target: $250 million

Amount Raised: almost $350 million

Small market fund-of-funds investor RCP Advisors as early as this month could hold a $350 million final close on its annual fundraise, its fifth and largest such fund raised to date. The firm had earlier set a hard cap of $325 million. But limited partners agreed to let the firm take in a little extra.

RCP Advisors, with offices in Chicago and Newport Beach, Calif., backs funds averaging $400 million in size and that are deployed to acquire companies for between $10 million and $250 million. The firm avoids emerging managers, but will take a flyer on a second fund. For example, the firm plans to back the second fund of Salt Lake City-based Sorenson Capital, which is coming off a highly successful debut effort.

RCP Advisors typically commits its funds starting in the summer of one year and extending till the summer of the next. Among its first commitments for the current fund is Centre Partners V, which has a target of $850 million. Centre didn’t return a call.

The fund of funds that RCP Advisors raised last year closed at $265 million, beating a target of $225 million. Limited partnerships that it backed in that fund include turnaround fund KPS Special Situations Fund III and consumer products-focused TSG Consumer Partners V.

Since its founding in 2001, RCP Advisors has seen its investor base grown more institutional. Just 20 percent of its money came from institutional investors when the firm launched its first fund, while today 80 percent does. Among past LPs are Indiana University.

Tom Danis and his uncle Timothy Danis founded the firm after careers at Aon Risk Services. The other managing principals are Jeff Gehl, Charles Huebner and William Souder.