RCP Advisors is ready to launch its latest fund of funds earmarked for commitments to small and mid-sized buyout funds. The likely target: $250 million, though the firm could well hit $300 million.
Following the model of Adams Street Partners, the Chicago-based firm raises a new fund of funds every year. RCP IV closed at $265 million late last year, ahead of its $225 million target. The firm typically launches its funds in April, then closes them seven to nine months later.
The firm plans to back 12 to 15 funds this years, aiming for an average fund size of between $350 million and $400 million. The firm never commits to funds larger than $1 billion. In the past, RCP has committed to funds managed by Brockway Moran & Partners, Harvest Partners, KPS Special Situations Fund, Riverside Co. (its $250 million micro-cap fund), Sentinel Capital Partners and The Sterling Group. RCP’s LPs include Indiana University.
RCP is short for Reserve Capital Partners, a name borrowed from the California resort at which the partners drew up their original business plan. The firm’s two founders are Tom Danis and his uncle Timothy Danis, who founded the firm in 2001 after coming from Aon Risk Services. The other managing principals are Jeff Gehl, Charles Huebner and William Souder.