LPs Ask Sun Capital To Cut Fund Size
Sun Capital Partners has a new headache to worry about, in addition to its rash of bankruptcies, personnel defections and NY Post antagonists. Certain investors in Sun's $6 billion fifth fund have informally asked the firm to consider a fund size reduction. The discussions are still at a preliminary stage, without any formal proposals having been yet been presented. "It's really the larger LPs who are having liquidity issues, which is as much of a driver here as anything," says a longtime Sun investor. "They probably want all of their GPs to cut fund sizes, but you have to pick and choose... and Sun is an easy target right now." Why the bulls-eye? One reason is simple math: Sun has invested just around 26% of Fund V, which means there is plenty of dry powder that can be returned to sender. Moreover, the existing fund
