SC Capital Partners, the Singapore-based investment management firm, is targeting to wrap up the initial round of capital raising for its debut open-ended core-plus vehicle in Asia at around $480 million, PERE has learned.
According to a source familiar with the capital raising the firm will close the SC Core Fund by April, and will resume capital raising only after the completion of the three-year investment lock-in period or once 95 percent of the fund’s equity has been invested, whichever happens earlier.
SC Capital declined to comment on fundraising. However, according to the source, the firm is in discussions with prospective investors to raise the target amount. So far, $280 million has been raised for the pan-Asia fund from six US investors and three European investors.
The investor base includes The Wyoming State Loan and Investment Board (SLIB), the state agency managing Wyoming’s land funds that is one of the biggest investors in the fund with an equity commitment of around $150 million; and the City of Phoenix Employees Retirement System (COPERS) whose investment amount is not known. European investors that have already made hard commitments include a German insurance group, a Swiss public city pension plan, and a Danish pension fund.
The SC Core Fund, SC Capital’s first low risk/return vehicle, was launched in mid-2015. The fund is open-ended in nature but the firm set an initial target of $400 million.
The bulk of the capital will be invested in Japan, Australia, New Zealand, Singapore and Hong Kong while the remaining will be reserved for secondary markets. Three assets have been acquired so far with a total gross asset value of $100 million. These include a student accommodation property in Australia, and a retail asset in Hong Kong currently leased to education and tutoring services, according to an earlier PERE report.
Overall, investments made from the fund are expected to generate IRRs of between 8 and 10 percent.