SK Capital Partners, a transformational private investment firm, has successfully closed its first institutional fund, SK Capital Partners III, with capital commitments totalling USD500 million.
The fundraising, which exceeded its initial target of USD400 million, was oversubscribed and completed within seven months of its launch.
SK Capital Partners III’s investor base is comprised of a diverse group of high quality institutional investors, both international and domestic, including public and corporate pension funds, insurance companies, foundations, family offices and funds of funds.
“We are very pleased with the tremendous support we received from institutional investors and their confidence in our ability to continue to deliver strong returns in good times and bad,” says Barry Siadat, Managing Director, SK Capital. “We believe the volatile macroeconomic backdrop will provide fertile ground to execute our strategy."
SK Capital focuses on control buyouts, recapitalisations and growth equity investments in the specialty materials, chemicals and healthcare sectors. The firm is comprised of experienced owners, operators and investors within its areas of focus, and seeks to leverage its differentiated knowledge to facilitate the transformational improvement of its portfolio companies. As an informed buyer, SK Capital is able to provide sellers speed and certainty of close, particularly with respect to corporate carveouts and businesses in transition.
“Despite an overall challenging fundraising environment, the reception by institutional investors was overwhelmingly positive,” says Jamshid Keynejad, Managing Director, SK Capital. “Investors were attracted to the fund for several reasons, including: the firm’s differentiated investment strategy; its track record of generating outsized returns through consistent and substantial improvement in growth, profitability, strategic positioning and risk; and the applicability of SK Capital’s approach to any point in the economic and credit cycles.”
“More than ever in the private equity industry, consistently generating strong returns will require precise opportunity selection, prioritised and well-resourced improvement initiatives, prudent utilisation of leverage and aggressive risk mitigation,” says Jim Marden, Managing Director, SK Capital. “We have assembled the team and model to successfully do this, and look forward to rewarding the faith our investors have shown in us.”
UBS Securities LLC acted as placement agent for SK Capital and Morgan, Lewis & Bockius LLP provided legal counsel.