The firm, which will continue to target stakes in other secondaries funds and funds-of-funds, surpassed its initial target of $400 million for SOF III.
The fund held its first close in October 2016 at $213 million, having launched that April. Investors in the fund include San Bernardino County Employees’ Retirement Association (SBCERA) at $25 million; Cumbria Local Government Pension Scheme at £25 million; and Surrey County Pension Fund at £20 million.
According to a due diligence report prepared for SBCERA by NEPC Consulting, the fund has a 10% carried interest rate, a 10% hurdle rate and a 0.75% nominal management fee on invested capital.
Expecting a 17% net IRR for its investors, SL Capital will commit $1 million to the fund as a general partner.
The firm’s predecessor vehicle, SOF II, closed on $291 million in May 2015.