Frank Baker, Peter Berger and Jeffrey Hendren need $400 million for their new buyout shop, which will be independent of SAC though Mr. Cohen will get a piece of the action 'cause that's how he rolls.
The new outfit, known as Siris Capital, is looking to raise $400 million for a fund that will make buyout investments in technology, telecommunications and health-care services, although other industries will be considered, these people said. Cohen, who acted as sole backer of deals executed by the private capital group, will help support the debut vehicle, Siris Partners II LP, these people said. It couldn't be determined how substantial his stake will be.
Siris co-founders Frank Baker, Peter Berger and Jeffrey Hendren worked at private equity firm Ripplewood Holdings LLC for more than a decade before joining S.A.C. Capital in 2007. The three men co-founded the hedge fund manager's private capital group which they planned to use as a stepping stone to raising a third-party fund.
While part of S.A.C. Capital, the private equity group executed three deals including investments in Cosmos Bank Taiwan (2837.TW), network infrastructure company Airvana Inc. and MedQuist Holdings Inc. (MEDH), a provider of clinical documentation services for the U.S. health-care system. MedQuist listed on Nasdaq this month.