Sycamore Partners Targets $4B For Third Retailing Fund

Oct 9 2017 | 5:50pm ET

Fresh off the September closing of its $6.9 billion acquisition of U.S. office supplies chain Staples, retail-focused private equity company Sycamore Partners is reportedly raising up to $4 billion in capital commitments for its third fund.

The fundraising process is expected to last until January, according to a Bloomberg report citing unidentified individuals familiar with the plans. The fund, named Sycamore Partners III, will focus on a market segment in which brick-and-mortar retailers are under severe pressure while online ones prosper. 

Should the target be reached, Fund III will be at least 60% bigger than the company’s second fund, which raised 2.5 billion in 2014. The second fund had a -3.4% return as of the end of 2016, according to Bloomberg data. 

Conversely, the company’s first fund, a $1 billion pool raised in 2012, had a nearly 60% annualized return through 2016, the data showed. 

Founded by Stefan Kaluzny and Peter Morrow in 2011, New York-based Sycamore specializes in consumer and retail investments is invested in companies Nine West, Talbots and Coldwater Creek, as well as department-store chain Belk and others. Not counting commitments to its new fund, the company has more than $3.5 billion in capital under management. 

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