SC Capital Partners, the Singapore-based private equity real estate firm led by entrepreneur Suchad Chiaranussati, has returned to the capital markets to raise its biggest fund yet.
PERE can reveal that the firm, which was formed by the ex-Westbrook executive in 2004, plans to raise $750 million for the fourth in its pan-Asia, opportunity real estate fund series, Real Estate Capital Asia Partners (RECAP) IV.
If successful, the raising would exceed its previous largest fund, RECAP III, which attracted $530 million from institutional investors in 2012. That fund was oversubscribed by more than $100 million but was stopped at $30 million beyond its $500 million hard cap. Its original target was $400 million.
This time around, it is understood that the firm’s existing investors already have soft circled commitments for the fund that would see it exceed its loftier $750 million target.
Such is the apparent clamour to be committed in this fund, it is believed the firm will hold just two closings, one by the end of the summer, the other by the end of the year or early in the first quarter of 2015. Indeed, certain investors already are understood to have had investment committee approvals to make commitments.
The popularity of the RECAP funds stems largely from the firm’s performance across the series. SC Capital’s first RECAP fund collected $221 million in 2005 and generated a 16 percent IRR and a 2x equity multiple.
Its second was smaller, attracting $190 million in dire capital raising conditions in 2010. That fund is expected to have been fully liquidated by the end of the year and is projecting an IRR of more than 30 percent and a 1.9x equity multiple.
Fund III attracted $530 million and it is understood that by the end of the year approximately $180 million of that capital will have been returned to investors. That fund’s investments too are tracking an IRR of more than 30 percent.
The return target for SC Capital with RECAP IV is 20 percent IRR and 2x equity multiple and its investment period is four years.
Having generated consistently high returns for its investors, SC Capital has become one of the few investment managers to have come through the global financial crisis still able to enjoy a high degree of strategic discretion. As such, its returns have come from a wide array of investment types including J-REITs in Japan, hospitality assets in Thailand and even floating hotels in Myanmar.
SC Capital declined to comment.