RCP, StepStone buy stake in Hancock Park Capital III – exclusive

One of the main drivers behind the purchase was portfolio company Charming Charlie.

RCP Advisors and StepStone have acquired a stake in Hancock Park Associates’ (HPA) third fund, Hancock Park Capital III, for $50 million, according to a source familiar with the transaction.

Terms of the club deal were not available and the name of the seller was not disclosed.

The transaction closed last week, according to the source.

HPA, which is based in Los Angeles, closed Hancock Park Capital III in 2005 with $256 million.

One of the major attractions of the fund for the buyers was its investment in Charming Charlie, a women’s contemporary jewellery and accessory retailer, which opened its first New York flagship store last month, the source said. The company now has nearly 350 stores in shopping centres and malls across the US.

Other portfolio companies include Advent Aerospace, grocery chain Brown & Cole Stores and home furnishing brand Barcalounger.

HPA, which also has an office in Houston, was founded in 1986 and focuses on investing in small to mid-size companies, targeting companies with lengthy operating histories in mature industries, according to its website.

RCP Advisors, StepStone and HPA weren’t immediately available for comment.