EXCLUSIVE: SC Capital holds $850m final closing

SC Capital Partners, the Singapore-based private equity real estate firm, has held a final closing for its fourth pan-Asia opportunity fund on $850 million. The final closing happened on Wednesday, 5 November.

As PERE revealed last month, the firm led by entrepreneur Suchad Chiaranussati, exceeded its original $750 million fundraising target for Real Estate Asia Capital Partners (RECAP) IV fund.

Such was the demand from institutional investors for the fund, SC Capital is understood to have had to turn away as much as $450 million of commitments. Indeed, it is believed the firm could have populated the vehicle with existing investors. However, despite increasing the allocations for its existing investors the firm has been able to accommodate certain new investors too.

It is thought the capital was raised from more than 25 investors from around the world. Placement agent Park Hill advised SC Capital on its fundraising.

It is also understood that the firm has begun circling potential investment destinations, with Australia, Singapore, Thailand and Japan being the key targets. By the year end, it is expected to have invest $100 million to $150 million from the fund.

The return target for SC Capital with RECAP IV is 20 percent IRR and a 2X equity multiple, in keeping with typical opportunity funds, and the investment period of the vehicle is four years.

Launched in 2004, SC Capital has emerged as a formidable investment manager in the region, generating consistently high returns for its investors. Its first RECAP fund was launched in 2005 and attracted $221 million. It generated a 16 percent IRR and a 2x equity multiple.

The second fund, with $190 million in equity, was launched in 2010 and is expected to be fully liquidated by the end of this year with an IRR of 30 percent and a 1.9x equity multiple. Fund III brought aboard $530 million, of which $180 million is slated to have been returned to investors by end 2014.

SC Capital declined to comment.