For Fund Managers
RCP Advisors is a leading investor in North American buyout funds. While this is a niche within the larger private equity sector, it is an extraordinarily large and diverse niche. RCP maintains relationships with hundreds of institutionally backed managers, but is always seeking new relationships in this large and constantly changing market. If you are a general partner seeking capital, the following criteria may help you determine your fit with RCP:
We are a niche specialist focusing exclusively on North American buyout managers. This is a very broad area which encompasses a variety of geographic strategies and styles (such as distressed or growth). It generally does not include early stage or venture capital strategies or managers who focus primarily on investments outside of the United States or Canada.
We are further focused on the lower end of the middle market. This has more to do with the complexion of the underlying portfolio investments than it does on an arbitrary fund size. Our sponsors generally buy companies that have between $10 million and $250 million of enterprise value. Our sponsors’ funds typically fall within a range of $200 million and $1 billion in capital commitments.
While we have numerous investment criteria, most involve an analysis and assessment of a manager’s team and team dynamics, their investment strategy, their past investment performance, and their alignment of interests with their investors. All of these assessments are highly interrelated so that we can determine the likelihood of past success persisting into the future.
Within the lower middle market buyout community, RCP is a credible and sought-after partner. We are a thought leader within this community and we sit on the advisory boards of numerous buyout funds. Our relationship with general partners often goes beyond our role as a primary limited partner. Often, GPs are the first to become aware of liquidity needs within their investor ranks, and they seek a knowledgeable, known, and discrete partner as a potential secondary buyer of these investor interests. RCP is an active buyer of secondary interests, and a significant amount of historical deal flow has come from strong GP relationships. Similarly, RCP believes GPs seeking co-investors in their deals find RCP to be an active and reliable participant in co-investment activities.