Search Investment Group, via its subsidiary Squadron Capital, is setting up a private-equity fund of funds named Squadron Asia Pacific. Search Group is the Hong Kong investment arm of the Robert Miller family of Duty Free Shoppers fame. The family will kick in an initial $40 million. This should be 10-20% of the fund size, which is targeted initially at $200 million and capped at $400 million.
Management fees are likely to be 1%, with back-end performance fees of approximately 10%. The tenor of the fund will be commensurate with the lifecycle of private-equity deals and funds, and should extend to 12 years in duration. The target IRR is 30% gross per year.
¬ Haymarket Media Limited. All rights reserved.