SL Capital Partners is fundraising for its latest dedicated secondaries fund, which will focus on less competitive areas of the market.
The Edinburgh-based firm is seeking $400 million for SL Capital Secondary Opportunities Fund III (SOF III), according to documents presented to the San Bernardino County Employees’ Retirement Association (SBCERA). There was no mention of a hard-cap.
SOF III’s strategy will include acquiring stakes in funds of funds and secondaries funds where deeper discounts can be found, as well as mid-market buyout funds in the North American and European secondaries market. The fund can also invest in complex or structured secondaries, according to the documents.
A first close is expected in the second quarter of 2016 with a final close within 12 months of the first.
SL Capital‘s predecessor fund, SL Capital Secondary Opportunities Fund II (SOF II), closed above its $200 million target on $291 million in May, according to PEI Research & Analytics. Investors in SOF II include Massachusetts Bay Transportation Authority Retirement Fund and Clwyd Pension Fund.
An investment officer at SBCERA recommended the pension’s board of retirement approve a $25 million commitment to SOF III.
SBCERA, which manages $8 billion on behalf of about 33,000 members in the Californian county, previously committed $25 million to SL Capital’s two previous secondaries vehicles, according to the documents.
SL Capital declined to comment.