CEO Stefan Hepp says that he has watched with interest the dwindling number of U.S. advisory shops that emphasize non-discretionary services, a less lucrative enterprise, in general, than providing discretionary work. SCM Strategic Capital, which prides itself on non-discretionary work for its mainly European clientele, figures it may be able to fill the breach.
The firm hasn’t decided exactly how to go about its entrée in the United States. Possibilities include acquiring an advisory shop, or establishing a joint-venture with one, according to Hepp. Were it to simply open a branch office here, the firm would most likely do so in New York City.
As an investor, the 12-year-old shop is already an experienced hand in the United States, having channeled hundreds of millions of dollars in client money into funds managed by such firms as Advent International, The Blackstone Group and Hellman & Friedman. The firm also has invested heavily with fund managers in Europe and, to a smaller extent, in Asia.
Altogether the firm advises investors holding some $6 billion in private equity, infrastructure and real estate assets; of that sum $4 billion is non-discretionary.
The firm opened its London office in February. It opened its Hong Kong office last month.
Expect SCM Capital to commit about $1 billion this year to perhaps 15 funds, up from $800 million last year. Most of that sum will be divided about equally between U.S. and European funds, with perhaps $150 to $180 million going to Asia and other parts of the world, including South America. —David Toll