Siris III attracts $2.3 bln-plus of demand; final close planned for January

  • Siris to secure 85 pct of commitments in Dec. first close
  • Siris III targeting $1 bln with $1.5 bln hard cap
  • Fund II netted 53.7 pct IRR

The New York-based firm set a $1 billion target for Siris Partners III with a hard cap that could go higher than $1.5 billion “given the demand and oversubscription of the Fund,” according to Los Angeles County documents. Siris has attracted between $2.3 billion and $3.8 billion of demand from investors.

Former Ripplewood Holdings and S.A.C. Private Capital Group executives Frank Baker, Peter Berger and Jeffrey Hendren founded Siris in 2011. The firm developed a strong track record with its first institutional vehicle, netting a 53.7 percent internal rate of return with 2011’s $641 million Siris Partners II through June 30, according to Los Angeles County documents.

The firm’s pre-fund track record, which it funded with co-investors on a deal-by-deal basis and presents under the heading Siris Partners I, grossed an 11.2 percent IRR as of June 30, according to retirement association documents.

Siris will charge limited partners a 2 percent management fee on committed capital during the five year investment period. The management fee falls to 1.75 percent afterward. Directors’ fees, investment banking fees, monitoring fees, closing fees and “other similar fees” paid to the general partner will offset the management fee, according to Los Angeles County documents.

Siris Partners III will invest in U.S. middle market technology companies, with plans to commit between $150 million to $300 million of equity per deal. The firm will likely start deploying Fund III capital during the second quarter of 2015, according to Los Angeles County documents.

Siris declined to comment.

Los Angeles County allocated up to $100 million to Siris Partners III at its Nov. 19 Board of Investments meeting. The $47 billion retirement association postponed a scheduled vote on a commitment to Juggernaut Capital Partners III, Chief Investment Officer David Kushner said in an email. Kushner did not respond to a question about why Los Angeles County postponed the vote.