Deals

SC Management holds quick $60m first closing

The Asia-focused private equity real estate firm has taken just two weeks to hold a first closing of $60m for its third Asia opportunity fund, Real Estate Capital Asia Partners III.

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SC Management, the Asia-focused private equity real estate firm founded by ex-Westbrook Partners executive Suchad Chiaranussati, has held a first closing for its third Asia real estate opportunity fund almost immediately after launching its private placement memorandum for the vehicle.

According to filings made to the Securities and Exchange Commission (SEC) the firm held a first closing of $60 million for its Real Estate Capital Asia Partners III (RECAP III) fund for which it is targeting a total capital raising of $400 million.

A PERE source said the closing occurred just two weeks after the firm launched the pan-Asia real estate investment vehicle. SC Management declined to comment about its fundraising activities when approached.

PERE revealed in March that the fund was poised to come to market. The firm set a $500 million hard cap for the fund and capital raising is expected to be split over four and five capital closings.

The capital raised for the fund is expected to be deployed one third in Japan, one third into Greater China and the remaining third in Southeast Asian countries. Investments are expected to yield a return of 20 percent IRR and 2x equity in line with typical opportunistic real estate funds.

The majority of the capital raised in its first closing is understood to have come in the form of repeat commitments from investors which participated in the firm’s prior two funds which are understood to have performed well.

SC Management’s debut fund, 2005’s $220 million RECAP I, is now fully exited and has returned approximately 16 percent IRR and 2x equity. Its follow-up fund, RECAP II, which closed on just more than $190 million at the end of 2009, is more than 75 percent invested and is understood to be currently projecting an IRR of more than 30 percent IRR and 2x equity again.

SC Management is raising its capital with help from placement agent Park Hill Real Estate Group which is owned by The Blackstone Group.

SC Management, which has grown to approximately $800 million of assets under management in Asia since its founding in 2005, was included in PERE’s Ready to break out feature, published in July, tipping future successes for 10 emerging managers. To read it, click here.