RCP smashes hard-cap with near $800m raise for secondaries

The lower-mid-market-focused manager had set a $650m hard-cap on RCP Secondary Opportunity Fund IV.

RCP Advisors has raised almost 60 percent more than its target with the final close of its fourth secondaries vehicle.

The Chicago-headquartered firm has collected $797 million for RCP Secondary Opportunity Fund IV, according to a statement. Its target was $500 million with a $650 million hard-cap, Secondaries Investor reported in August 2021 when the fund launched.

“In a difficult fundraise market, the positive market reaction to RCP Secondary Opportunity Fund IV shows that our differentiated focus on the small buyout fund market resonates with investors,” Jon Madorsky, managing partner and co-portfolio manager, said in the statement.

SOF IV, which focuses on the lower-mid market, will invest in both LP and GP-led transactions focusing predominantly on buyout, growth and restructurings.

Investors who have committed to the fund include Swiss investment firm Matador Partners Group AG, according to Secondaries Investor data.

Capital raising for private equity secondaries funds took up a larger proportion of total fundraising in the first quarter of this year, buoyed by Strategic Partners‘ record close in January. Dedicated secondaries vehicles focusing on private equity accounted for almost one fifth of the $163.9 billion raised for private equity between January and March, according to data from affiliate title Private Equity International and Secondaries Investor.

In the same period last year, secondaries funds accounted for just 2 percent of capital raised.

Fundraising data for secondaries in the first half of the year is set to be published in the coming weeks.