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SL Capital deploys 44% of debut secondaries fund

Edinburgh-based SL Capital closed its SOF I on $190m last year and launched its successor fund months later.

SL Capital Partners has deployed 44 percent of its debut secondaries fund, according to documents from the San Bernardino County Employees’ Retirement System (SBCERA) dated 10 March.

SL Capital declined to comment.

SL Capital Secondary Opportunities Fund (SOF I) closed on $190 million in February 2014. Limited partners include SBCERA, the Surrey County Pension Fund and the Cornwall Council Pension Fund, according to PEI’s Research and Analytics division.

The fund was generating a net internal rate of return of 35.6 percent as of 30 September. Not included in the IRR is a fund restructuring that closed in December 2014.

In the deal SL Capital invested about $24 million from SOF I and about $21 million in its successor fund SOF II to acquire eight underlying portfolio investments from a 2006-vintage US mid-market buyout fund.

SOF I also acquired €27 million-worth of limited partner interests in two funds of funds from a UK institutional investor. One of the fund of funds focuses on special situations and the other is geared toward European buyouts. In August Secondaries Investor reported SL Capital had acquired a stake in Pantheon Europe V. It is unclear if Pantheon is the European buyout fund of funds referenced in this transaction.

SL Capital is currently in market with SOF II, which has held a second close on $171 million toward its $200 million target. The fund is expected to close at the end of April or in early May.