Stone Point tops $1 bln on first close for largest Trident fund

  • Stone Point targets $5.25 bln for Fund VII
  • Closed on $1.25 bln in September
  • Fund VI raised $4.5 bln

Stone Point Capital is rolling through fundraising on Trident VII, its financial-services-focused fund targeting $5.25 billion, according to a limited partner with knowledge of the process.

It’s not clear exactly when Fund VII launched. As of August, the firm was considering a target of $4.5 billion on Fund VII with a $5 billion hard cap, a source told Buyouts at the time.

The LP said Fund VII has seen demand from LPs and is parsing out allocation space to investors. Fund VII held a first close in September on about $1.25 billion, the LP said, and is working on a second close around the end of October.

“They seem to have demand for it. Most other LPs I’ve talked to are supportive,” the LP said.

Emanuel Citron, a spokesman for Stone Point, did not respond to a request for comment.

The Greenwich, Conn., firm closed Fund VI on $4.5 billion in 2014. Fund V closed on $3.5 billion in 2011 and Fund IV raised $2.25 billion in 2007.

Stone Point focuses on financial services like banks and insurers. The firm was formed in 2005 when it spun out of Marsh & McLennan Cos, where it was the private equity unit.

Trident VI, still early in its j-curve period, was generating a 5.1 percent net internal rate of return and a 1x multiple as of March 31, 2016, according to performance information from California Public Employees’ Retirement System.

Stone Point is led by Chief Executive Charles Davis and Chairman Stephen Friedman. The executives worked together at Goldman Sachs for more than 20 years prior to forming the Trident funds. As of Dec. 31, 2015, Stone Point managed about $10.8 billion.

In 2012, the firm sold a minority stake to entities backed by Kuwait’s massive state pension, Public Institute for Social Security, the firm’s Form ADV said. The ownership stake represents less than 25 percent of the carried interest and net management company interests in the fund, the ADV showed.

Action Item: Read Stone Point’s Form ADV here:

Photo of Charles Davis courtesy of Stone Point