SK Capital Sets Up Small-Cap Fund Of $400 Million

By Dan Anderson ● November 13, 2019
  • Private investment SK Capital Partners announced it has set up a small-cap fund of $400 million

SK Capital Partners — a private investment firm that is focused on the specialty materials, chemicals, and pharmaceuticals sectors — announced the final close of SKCP Catalyst Fund I (known as “SK Catalyst I”) at its hard cap with limited partner capital commitments of $400 million.

SK Catalyst I is going to focus on control investments in the lower middle market utilizing the same sector-focused and operationally intensive investment strategy that SK Capital executed throughout its history. And the closing of SK Catalyst I — which was significantly above the initial $300 million target — follows the successful fundraising of SK Capital Partners V earlier this year.

“We are honored and grateful for the trust our investors have placed with our firm to support the inaugural SK Catalyst fund. The success of the fundraising was made possible by the strong relationships SK Capital has built with our existing limited partners and select new investors,” said SK Capital co-founder and managing director Barry Siadat.

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The fundraising for SK Catalyst I started in July 2019, shortly after SK Capital announced the expansion of its investment team. And the expansion allows the firm to devote additional resources to investments in the lower middle market in the specialty materials, chemicals, and pharmaceuticals sectors.

The SK Catalyst I investment team is comprised of experienced and industry-focused professionals, which is led by Managing Directors Mario Toukan and Jonathan Borell.

“We are excited to leverage SK Capital’s strong reputation as a trusted partner within our sectors of focus. The addition of the SK Catalyst team and fund will enable the firm to pursue attractive lower middle market investments while enhancing SK Capital’s overarching strategic objective to address a broader size range of opportunities in our space,” added Toukan.

The SK Catalyst I fund will target lower middle market investments that generally require up to $50 million of initial committed equity capital and will complement SK Capital Partners V — which closed earlier this year with approximately $2.1 billion of capital commitments.

Both of the funds will utilize SK Capital’s experience, best practices, and resources, including the firm’s strong connectivity to people and companies in SK Capital’s sectors of focus.

“The SK Catalyst investment strategy will bring a significant level of industry expertise, global resources and scale to lower middle market businesses. We look forward to partnering with management teams in our industries to help them dramatically grow and improve their businesses,” explained Borell.

SK Capital’s portfolio of businesses generates revenues in excess of $9 billion annually and employs over 10,000 people globally and operates 86 plants in 24 countries. Currently, the firm has about $4.6 billion of assets under management.

Kirkland & Ellis LLP served as legal counsel. And SK Capital did not use a placement agent for the fundraising of SKCP Catalyst I.