RCP nears close of $350M FoF

Small market fund of funds investor RCP Advisors is close to holding a final close of $350 million for its fifth and largest fund to date.

The firm had earlier set a hard cap of $325 million. Last year, RCP Advisors, which raises a fund annually, closed on $256 million, beating a target of $225 million. Among its past LPs are Indiana University.

RCP Advisors, with offices in Chicago and Newport Beach, Calif., invests in buyouts funds totaling about $400 million and which 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. The most visible partner of Sorenson is co-founder and Managing Director Steve Young, former quarterback with the San Francisco 49ers.

For RCP Advisors, among its first commitments is the fifth fund of New York-based Centre Partners Management, which expects to raise $850 million.

Last year, RCP Advisors invested in the $1.2 billion third turnaround fund of KPS Capital Partners and consumer products-focused firm TSG Consumer Partners (f.k.a. the Shansby Group), which raised $875 million for its fifth buyout fund.

RCP Advisors was co-founded by Tom Danis and his uncle Timothy Danis after careers at Aon Risk Services. The other managing principals are Jeff Gehl, Charles Huebner and William Souder. —Mark Cecil