- Secondary Opportunities Fund II targeting $200 mln
- Fund charging LPs less than 0.5 pct management fee
- San Bernardino County backs fund for $25 mln
SL Capital Partners, a subsidiary of Edinburgh-based Standard Life, is targeting $200 million to acquire stakes in European private equity funds-of-funds and direct middle-market buyout funds on the secondary market, according to retirement association documents.
San Bernardino County committed $25 million to SL Capital’s previous secondaries fund, a $190 million fund that closed last year. That fund has invested $84 million across four secondary portfolios purchased for an average discount of 18 percent, the documents state.
“The investment thesis behind SBCERA’s investment in SOF I and II has been to take advantage of the regulatory pressures facing insurance companies, banks, and other financial institutions in Europe by providing liquidity to enterprises that would need to come under compliance of regulatory rules,” the documents state.
SL Capital is offering investors a management fee that amounts to less than half of a percent of the fund’s net asset value, according to the documents. SL Capital will collect 10 percent carry over a 12 percent preferred return on the fund, which is targeting net returns in excess of 20 percent.
The SL Capital secondary opportunities team is led by Patrick Knechtli. Eric Albertson, Cameron Graham, Graeme Gunn, Stewart Hay, Roger Pim and Peter McKellar are also listed as key executives on the fund.