Stifel Financial Corp., Eaton Partners, a Stifel Company, and RCP Advisors, have announced the launch of Twelve Degrees, a strategic partnership focused on investing in and providing capital solutions to leading emerging and first-time alternative investment fund managers.
Twelve Degrees will combine Eaton’s capabilities as one of the largest global placement agents and financial advisory firms with RCP’s access to lower-middle-market private equity fund managers. Twelve Degrees will provide flexible capital solutions, strategic advice, back-office infrastructure, access to broader Stifel banking services, and global distribution, capital formation, and marketing capabilities designed to help emerging and first-time managers build and scale their businesses. These services will be provided in exchange for GP-level economics through anchor commitments, expansion capital, and working capital investment strategies that offer substantially more upside than traditional LP commitments.
“Combining the leading fundraising, advisory, and capital solutions capabilities from Eaton Partners and the broader Stifel platform with RCP’s investment track record is truly what sets Twelve Degrees apart from traditional capital providers,” said Mary Hunt, Principal at RCP Advisors and Managing Principal and Portfolio Manager at Twelve Degrees. “Together, we are excited to provide a truly value-additive offering that is uniquely tailored to the specific needs of emerging and first- time investment managers as they start and grow their businesses.”
Using a selective, data-driven, and long-term approach, the partnership will leverage institutional best practices and sourcing channels across both firms, including RCP’s proprietary GPScout database, an industry-leading database that tracks performance for more than 2,900 alternative investment firms.
“Emerging managers have historically outperformed established managers, and we believe there is a significant opportunity in the lower-middle-market private equity space,” said Jeff Eaton, Global Co-Head & Managing Partner at Eaton Partners and Managing Principal at Twelve Degrees. “Twelve Degrees is well positioned to provide a holistic offering that leverages the unparalleled collective expertise, track records, and trusted brands of both firms in investing in and raising capital for best-in-class emerging managers.”
Twelve Degrees will be led by Hunt and Eaton, along with Charles Huebner, Managing Partner at RCP, and Raj Patel, Partner at RCP. The senior team will be supported by over 120 private equity professionals from both organizations.
RCP has more than $11.6 billion in committed capital and a 20-year history of underwriting and investing in lower-middle- market private equity managers and portfolio companies across its 39 funds, as of April 4, 2022. Since forming in 1983, Eaton has successfully completed more than $130 billion worth of capital raises for over 175 funds. The Eaton Partners track record includes successfully raising nearly 50 first-time funds.