RCP sets $650m hard-cap for fourth fund

The lower mid-market firm was targeting $150m for an overage fund to take advantage of opportunities brought about covid-19.

RCP Advisors has upped the hard-cap for its latest lower mid-market secondaries fund by 30 percent.

The Chicago-headquartered private equity manager has set a limit of $650 million for  RCP Secondary Opportunity Fund IV, with a target of $500 million, according to a filing with the US Securities and Exchange Commission. The fund has raised $109.9 million from nine investors, having made its first sale on 10 August, the filing noted.

Predecessor Fund III had a target of $425 million and a $500 million hard-cap. It held its final close on $487 million from investors including The Community Foundation of North Louisiana and The Herbert H and Grace A Dow Foundation, according to Secondaries Investor data.

Last September, Secondaries Investor reported that RCP was in market with an overage fund to invest alongside Fund III. The fund was targeting $150 million to be able to invest in larger opportunities brought about by covid-19 without a co-investor.

“Many times [in the past], either the seller, the GP or the agent will decide they only want the piece going to one seller, which puts us at a disadvantage,” vice-president of business development and investor relations, Mike Rice, said in a webinar in May last year.

The overage fund had raised $87 million as of November. It is not clear whether it has closed.

Among the deals RCP has backed in 2021 is a GP-led process centred on a portfolio of mid-market healthcare and technology assets managed by Riverside Partners, Secondaries Investor reported. Neuberger Berman led the process worth $500 million in total.

RCP did not return a request for comment.