SL Capital opens in Hong Kong

The Scotland-based fund of funds sees increasing interest among Asia-based LPs for Europe.

Fund of funds SL Capital Partners, the private equity arm of Edinburgh-based Standard Life Group, has opened an office in Hong Kong to address regional fundraising, according to partner Graeme Gunn.

Christian Kim, investment director, is heading the office, which will serve current and prospective limited partners.

SL Capital is focused on niche investments in Western Europe and North America. 

“Historically we’ve focused our fundraising efforts in the UK, Europe, the US and Canada,” said Gunn. “We’re starting to see an increasing interest among Asian LPs who recognise that the European story is one of recovery. They're starting to look at the European market to tap into that interest.”

SL Capital’s investor base has been mainly made up of institutional investors such as pension funds and sovereign wealth funds. In Asia, the firm will also be seeking capital from the region's large pool of family offices and high net worth individuals.

SL is seeing a change in traditional sources of capital to sovereign wealth funds and other large Asian institutions.

“Money that first time round was invested locally now has a global outlook,” Gunn told Private Equity International in a past interview. “For example, the private equity opportunity in China has been disappointing recently – but their institutions are investing heavily in [more developed private equity markets].”

The firm has no immediate plans to invest in the region’s GPs. “[The office] is a first step for us,” Gunn said. “In due course, we may look at the investment side in Asia.”

Edinburgh-based SL Capital Partners is the private equity arm of the Standard Life Group, a FTSE 100 company established in 1825. It has raised funds that total €6.5 billion, with most of the capital coming from outside the Group, and is among the world’s largest fund of funds.