RCPDirect IV Exceeds Target Fund Size, Closing $645.4M in Aggregate Capital Commitments
Chicago, IL – July 7, 2022 – RCP Advisors, a sponsor of private equity funds-of-funds, secondary funds, and co-investment funds focused on North American lower middle market buyouts, announced the final closing of RCPDirect IV (the “Fund”). The Fund was oversubscribed, with approximately $645.4 million in aggregate commitments, exceeding its target of $500 million. The Fund has a broad LP base of both new and existing investors, including endowments, foundations, public pension plans, family offices, and high-net-worth individuals.
“We are grateful for the support from our global limited partner base. The recent closes of our fund-of-funds and secondary fund, as well as our continued deployment of our fourth direct co-investment fund, allows RCP Advisors to remain a comprehensive partner to both GPs and LPs within the lower middle market buyout space,” said Jon Soffer, Principal and Co-Portfolio Manager at RCP Advisors.
“The continued support despite the challenging macro conditions highlights our LPs’ faith in the lower middle market and our ability to find tremendous GPs to partner with who can identify and execute on initiatives that improve their portfolio companies regardless of market conditions. We are fortunate to be able to leverage our network and twenty-year history to work with such great partners,” said Dave McCoy, Managing Partner and Co-Portfolio Manager at RCP Advisors.
RCPDirect IV represents a continuation of the same investment strategy employed by RCP’s previous co-investment funds. The Fund will generally partner with lead buyout fund managers who raise funds between $100 million and $1 billion in committed capital and will make minority equity investments between $5 million and $30 million in lower middle market companies – typically, with $25 million to $500 million in enterprise value.
*“Committed capital” primarily reflects the capital commitments associated with our SMAs, focused commingled funds and advisory accounts advised by RCP since the firm’s inception in 2001 (including funds that have since been sold, dissolved, or wound down). We include capital commitments in our calculation of committed capital if (a) we have full discretion over the investment decisions in an account or have responsibility or custody of assets or (b) we do not have full discretion to make investment decisions but play a role in advising the client on asset allocation, performing investment manager due diligence and recommending investments for the client’s portfolio and/or monitoring and reporting on their investments. For our discretionary SMAs and commingled funds, as well as for our non-discretionary advisory accounts for which RCP is responsible for advising on all investments within the client’s portfolio, committed capital is calculated based on aggregate capital commitments to such accounts. For non-discretionary accounts where RCP is responsible for advising only a portion of the client portfolio investments, committed capital is calculated as capital commitments by the client to those underlying investments which were made based on RCP’s recommendation or with respect to which RCP advises the client. Committed capital does not include (i) non-discretionary advisory accounts no longer under advisement by RCP, (ii) assets managed or advised by the Private Capital Unit or HB Units of RCP Advisors 2, LLC, (iii) capital commitments to funds managed or sponsored by RCP’s affiliated management companies (including, without limitation, Five Points Capital), and (iv) RCP’s ancillary products or services.