Sycamore closes on $2 bln for second fund, near its target: UPDATED

Sycamore Partners II already has doubled the $1 billion that the firm raised for its inaugural fund, which closed in 2011. Two LPs told Buyouts that the firm has drawn healthy interest in its new fund. Another source said Sycamore Partners II is expected to exceed $2.5 billion in commitments. Sycamore disclosed the $2 billion closing for the fund in an amended Form D filing.

Sycamore bills itself as a consumer and retail-related shop that partners with established management teams to improve the operating performance of their companies.

Jones Group shareholders voted April 7 in favor of the take-private deal, which values the retailer at about $2.2 billion. In a carve-out transaction as part of the acquisition, Sycamore planned to transfer ownership of the Jones Apparel, Kurt Geiger and Stuart Weitzman brands to separate controlled affiliates of Sycamore, according to an 8-K filing. It plans to retain footwear brand Nine West Co and Jeanswear Co, a denim maker. The acquisition was expected to formally close on April 8, according to a source.

As part of the deal, Sycamore has provided an equity financing commitment of $551 million; KKR Asset Management has committed $60 million in equity as part the deal.

Along with Jones Group, the firm’s investment portfolio currently includes Hot Topic Inc, Talbots Inc, MGF Sourcing and Pathlight Capital.

Sycamore was founded by managing director Stefan Kaluzny, an alumnus of San Francisco-based Golden Gate Capital, along with Peter Morrow, managing director at Sycamore and a fellow veteran of Golden Gate. Kaluzny is also listed as an executive of Sycamore Partners II on a Form D filing with regulators. A spokesman for the firm declined to comment.

Earlier in his career, Kaluzny co-founded Delray Farms, a Hispanic specialty food company, which grew from a startup to $100 million of revenue in three years. He also has worked as a consultant at Bain & Co and as an associate with the LEK Partnership. He holds an MBA from Harvard University, a bachelor’s in history from Yale University and serves on the Yale investment committee.

In its first fund, Sycamore lowered its proposed management fee to 2 percent from 2.5 percent, according to the sources.

(This story has been updated to include additional fundraising information about the first close. An earlier version contained an incorrect title for Peter Morrow, managing director and co-founder of Sycamore.)