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SL Capital spin-out plans $500m fund debut

Constitution Capital Partners, formerly Standard Life Investments’ North American team, hopes to add to the $750m it raised from USS in 2008.

Constitution Capital Partners, a Boston-based fund of funds firm, is raising its first fund with a $500 million target, according to market sources. The firm is expected to have raised $250 million by the end of the year.

John Guinee

Constitution declined to comment.

The fund of funds platform was founded in 2008 by the former North American private equity investment team of Standard Life Investments. The six members of Standard Life’s North American team departed the firm en masse in 2008, following the private equity division’s partial spin-out from Standard Life.

Constitution is led by managing partners Dan Cahill and John Guinee.

This will be the group’s first fund raised from multiple institutions. To date it has been committing capital on behalf of the Universities Superannuation Scheme (USS), the UK’s second largest pension fund. In 2008,

Dan Cahill

USS acquired a 10 percent stake in Constitution and awarded it a mandate to invest up to $750 million in North American private equity funds.

Constitution’s investment strategy mirrors that executed by the team during its time at Standard Life: committing to small- and mid-market buyout managers with between $200 million to $2.5 billion in assets under management. The group also makes direct investments of $10 million to $45 million in companies with enterprise values between $100 million and $1 billion, according to its website.

So far the firm has committed to funds such as Houston-based Sterling Group’s $820 million Fund III and Providence-based Nautic Partners’ latest fund.