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EXCLUSIVE: SC Capital’s RECAP IV oversubscribed, closed at $800m

The Singapore-based private equity real estate firm has exceeded the original $750m capital-raising target for its latest opportunity fund and it is thought to have had $1.3bn of demand.

SC Capital Partners, the Singapore-based private equity real estate firm led by entrepreneur Suchad Chiaranussati, has raised between $800 to $850 million in equity at final closing for its fourth pan-Asia opportunistic real estate fund, PERE can confirm. The closing is scheduled to officially happen early next week. 

The total equity was raised through five quick closes, the first of which happened in September. 

The equity haul for Real Estate Asia Capital Partners (RECAP) IV, which exceeded the initial fundraising target of $750 million, is the firm’s biggest fundraising exercise to date. It further demonstrates the increasing allure that Chiaranussati’s firm currently is enjoying among investors. The capital was raised from more than 25 investors from around the globe, including endowments and public pension plans.

Indeed, it is understood that it had as much as $1.3 billion in interested equity commitments and so was forced to refuse almost $500 million from investors. 

No official hard cap was set in place although, to appease certain concerned repeat investors, it is understood that the firm did set an unofficial hard cap to limit capital raising to approximately $800 million. 

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 yearend, 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.