RCP Advisors holds first close on Fund III

RCP Secondary Opportunity Fund III, which launched in July with a $500m hard-cap, will focus on lower and mid-market North American funds.

RCP Advisors has held a first close on its third dedicated secondaries fund, a month after Secondaries Investor reported the firm had launched the vehicle.

The Chicago-based firm has collected $26.8 million for RCP Secondary Opportunity Fund III, according to a filing with the US Securities and Exchange Commission. The fund’s target is $425 million and its hard-cap is $500 million, as Secondaries Investor reported.

RCP III will acquire stakes of between $3 million and $30 million in lower- and mid-market North American funds that are more than 30 percent invested and range from $250 million to $1 billion in size.

According to the filing, based on a fund size of $500 million, management fees over the course of the fund will come to an estimated $43.75 million. Thirty investors have committed to the fund so far.

The date of first sale was September and the minimum commitment from an outside investor is $1 million, the filing notes.

document from RCP outlining the firm’s strategy states the GP usually makes a commitment of around 10 percent of aggregate capital commitments and that the hurdle rate on its funds is between 10 percent to 15 percent.

RCP’s previous secondaries fund held the final close on its $425 million hard-cap in July 2013, above its $300 million target after 14 months of fundraising, according to PEI data.

Investors in RCP Secondary Opportunity Fund II include Carnegie Melon University, the Achelis Foundation and Clemson University Foundation.

RCP Advisors has $5.9 billion in assets under management across fund of funds, secondaries and co-investment funds, according to its website.

The firm did not return a request for comment.