Southern Cross Fund Goes North Of Target

Firm: Southern Cross Capital Partners
Fund: Southern Cross Latin America Private Equity Fund III LP
Target: $500 million
Amount Raised: $750 million
Placement Agent: Stanwich Advisors LLC

Southern Cross Capital Partners is about to close its latest Latin America buyout fund just north of the $750 million hard cap, a source with knowledge of the fund told Buyouts.

Southern Cross Latin America Private Equity Fund III LP came into the market in late 2006 with a target of $500 million. The firm secured commitments from its existing base of limited partners in Latin and South America, and gained more than 20 new LPs in the United States, Europe and the Middle East.

Fund III is earmarked for middle market and large buyouts in Latin America. and Southern Cross plans to make between five and seven control-oriented investments, according to our source. The firm plans to parcel out equity investments in slugs ranging from $50 million to $150 million. The investment horizon is four to five years.

With main offices in Buenos Aires, Argentina, and Santiago, Chile, Southern Cross is active throughout Latin and South America and does not specialize in any particular sector. The firm recently did a club deal to acquire Laureate Education Inc., joining with a consortium of investors that included Kohlberg Kravis Roberts & Co., Citigroup Private Equity, S.A.C. Capital Management, SPG Partners, Bregal Investments, Caisse de dépôt et placement du Québec, Sterling Capital, Makena Capital and Torreal SA.—J.P.