Dan Beam’s Post

📣 Victor Capital Partners Closes Oversubscribed Fund II at $310 Million - Victor Capital Partners is a middle-market private equity firm focused on branded businesses in the specialty consumer, industrial technology, and business services sectors. - Successfully closed its oversubscribed Victor Capital Partners Fund II, L.P. (Fund II) with $310 million in capital commitments. - Fund II exceeded fundraising targets with support from both existing and new institutional limited partners. - Key partners: Douglas Korn, David Affinito and Matt McLain. - Focus of Fund II: Invest in fundamentally strong lower middle market businesses with defensive characteristics, capable of unlocking significant value regardless of market conditions. - The firm aims to deploy $25 million to $100 million of equity capital per transaction. - Doug Korn, Founder and Managing Partner, stated “There are so many great branded businesses across the lower middle market at inflection points in their lifecycles that we believe would benefit from the right strategic partner to help accelerate their growth trajectories.” - The first investment from Fund II: The COATS Company (acquired in January 2024), a 76-year-old manufacturer and distributor of wheel service and shop productivity equipment. - Lincoln International Private Funds Advisory acted as placement agent, and Kirkland & Ellis served as fund counsel.

Steady growth: Cove Hill Partners, formed by ex-Bain Capital dealmaker Andrew Balson in 2017, is back in market with its third #privateequity fund. The firm has pursued a steady growth pace since its launch to make investments in consumer and tech with the flexibility to hold certain assets longer than usual in PE land. Cove Hill's funds come with long-hold characteristics -- both a longer fund life, and an evergreen structure to hold certain assets longer. The firm has returned more capital to LPs in Fund I (2017 close) than they contributed, an LP source told me. Check out the details here on Buyouts (along with all our extensive emerging manager coverage): https://lnkd.in/e35FHAPv

Congratulations to private markets fund manager Hunter Point Capital LP on raising their inaugural GP stakes fund at $3.3 billion, with a GP commitment to the fund of $150 million - nearly 5% of total aggregate commitments. The fund has no set lifespan and can perpetually channel cash distributions from the fund’s investments back to the fund’s backers, with a minimal annual servicing fee paid by limited partners after the period viewed by traditional fund partnerships as the end of life. The permanent capital structure frees the firm from pressure to exit its investments within a set period. Given the nascency of the GP stakes industry over the past decade, net returns to limited partners on a TVPI and IRR basis remain largely unknown, but the view that backing enduring best-in-class fund managers that can continue to grow and deliver returns over multiple decades could generate attractive yields and upside for limited partners. That being said, a lot of capital is being raised by GP stakes fund managers, so it will be interesting to see how this investment strategy plays out, especially for those of us who have significant exposure to the strategy across managers and market segments. Over the past 3 years, Hunter Point Capital LP has been investing the fund in minority positions of #privateequity, #privatecredit, #realestate, and #infrastructure managers across #NorthAmerica and #Europe. Existing portfolio: - European buyout firm Inflexion - Consumer-specialist investor L Catterton - Chicago-based middle-market private markets manager The Vistria Group - Middle-market private equity and credit fund manager MidOcean Partners - Direct lending specialists SLR Capital Partners and Iron Park Capital Partners, LP (exited in 2023 to General Atlantic) - Real-estate specialist manager Pretium Partners - Leading global secondary-market specialist Coller Capital In the overall GP stakes market, according to PitchBook,the number of general partner stakes deals has gradually climbed from 42 in 2008 to a peak of 136 in 2021, and the annual aggregate value of deals has fluctuated, with a record $18.7 billion in 2015. Asia still remains limited in the GP stakes landscape of activity, with AMG's stake and 5.0X+ exit in Barings Asia (BPEA) to EQT Group one of the more remarkable GP stakes investments/exits. Where are the best opportunities in GP stakes? At the larger end of the AUM spectrum? The Middle market? At seeding? We are exposed at all stages, so we will see, but I do know competition across markets are rapidly increasing, and capital raised for GP stakes/seeding continues to expand. Let me know if you want to chat on the topic anytime! #gpstakes #Privatemarkets #alternativeinvestments #fundmanagers #privateequity #capitalmarket #limitedpartners #institutionalinvestors https://lnkd.in/gHQ9mU8T

📣 Valeas Capital Partners Closes $600M Inaugural Fund, Managing $1.2B in Assets - Valeas Capital Partners, a San Francisco-based private equity firm, closed its first institutional fund, VCP Fund I, at over $600 million, exceeding its target - Focuses on partnering with growth-oriented businesses to build leading business franchises. - Strong support from institutional investors, former colleagues, and founders/CEOs from prior partnerships. - Total assets under management now approximately $1.2 billion. - Co-founded by Rob Little and Ed Woiteshek, former colleagues at Hellman & Friedman. Combined investment and operating expertise. - Built a cross-functional team with investor-operator skillsets. - The general partner is the fund’s largest investor, ensuring alignment with limited partners. - Rob Little: Highlights Valeas’ collaborative approach to professionalizing businesses and accelerating growth. - Ed Woiteshek: Emphasizes the values-based culture, proprietary sourcing network, and investor-operator mindset as key to value creation and management partnerships. - Portfolio Highlights: CINQCARE, Sequoia Financial Group, Baker Tilly, Ren, Well. - Placement agent: Connaught (U.S.) LLC. - Legal advisor: Kirkland & Ellis.

Bridger Pennington explains the structure of Private Equity funds, brilliantly! According to him, the process should not be complicated! Here are the major moving parts: ✅ General Partner (GP): The one who manages the fund and directs the capital investments. You are responsible for making all strategic decisions. ✅ Limited Partners (LPs): These are your investors. They provide the capital but have limited liability and minimal decision-making power. ✅ Management Fees: New fund managers should avoid high management fees. Instead, focus on building trust and results before charging the typical 2%. ✅ Preferred Return (Pref): Set an 8% pref, ensuring your investors receive the first share of returns before the GP profits. ✅ Catch-Up: After the pref, you can allocate a small catch-up fee (e.g., 2%) to compensate yourself for managing the fund. ✅ Carried Interest (80/20 Split): Any returns above 10% are typically split 80% to LPs and 20% to the GP. This is where fund managers can maximize their earnings. ✅ Long-Term Strategy: Most PE funds operate with a 10-year lockup period, where businesses are acquired, scaled, and eventually sold to generate returns for investors. Bridger’s approach focuses on aligning interests between fund managers and investors while providing opportunities to maximize profits. 💡 Want to connect with other ambitious Private Equity fund managers and grow your network? Apply to join our Venture Network community today: https://lnkd.in/dPJxu2w4 #PrivateEquity #Funding #Investments #Innovation

Coller Capital, an independent investor dedicated exclusively to private market secondaries, announced the upcoming launch of the Coller Secondaries Private Equity Opportunities Fund, a closed-end tender offer fund specifically designed for accredited high-net-worth investors. According to the company, this private equity secondaries-only offering unlocks a new avenue for individuals to invest in private markets, providing access to the asset class through a diversified, institutional-quality portfolio.   Coller Capital Jake Elmhirst Jeremy Coller #alternativeinvestments #CollerCapital #privateequity #tenderofferfund #liquidity #highnetworthmarket

Signal Hill’s unique 20 year term for its Fund IV stands out from other private equity companies which typically have a much shorter 10 year term for their funds. The extended life of our investment fund allows us to work with the management teams to execute a strategy patiently and thoughtfully. Acquisitions and investments can be completed with a long-term investment horizon and avoid the need for a short term win or a quick flip.    The 20 year fund life also allows us to manage through economic disruptions caused by unforeseen events such as Covid or a recession without the pressure of selling a business because the investment fund is coming to an end or the investors require a liquidity event. We can wait out macro-economic changes and help companies accelerate through market events.   Working with our partners who oversee the portfolio companies for a longer period allows Signal Hill to create bigger, better, and more resilient businesses. A true invest-and-build approach that allows us to take a long-term approach in decision making and focus on what matters: employees and customers.   Our approach to private equity allows our management team to see-through long-term growth in their companies and avoid a quick flip to impress investors. A long-term fund life means we have the freedom to sell, when management advises that the time is right. Over 10-15 years, real partnerships can be formed; and great, enduring business can be created.   Follow this link to learn more about how we have created enduring business: https://lnkd.in/gyg-cCkB

Another remarkable emerging manager middle-market private equity fundraise as San Francisco-based Knox Lane raises their Fund II with $1 billion in total commitments, exceeding the target of $850 million, and the oversubscribed fund receiving significant support from existing and new investors in a 46% increase in fund size over Knox Lane's first fund, which was $610 million. The firm now manages approximately $3 billion. I also find it notable that the fundraise was supported by William Blair's private capital advisory team - many of whom have come over from the once market-leading Credit Suisse platform. This is noteworthy as several other recent successful emerging middle-market private equity fundraises have been alongside boutique middle-market fundraising specialists such as Lazard, Aviditi Advisors, M2O, Inc. Spartan Advisors and others. An increasing number of international limited partners in Asia and the Middle East are asking me about the best placement agents to access US middle-market private equity fund managers. The names above are certainly worth connecting. While the announcement has been recent, most of the Knox Lane fundraise was completed late 2023/early 2024 while left open for a few tail-end follow-on investors, and several market participants noted this was quite a rapid fundraising process for Knox Lane. Knox Lane has completed eight platform #investments and approximately 40 add-on #acquisitions. Definitely a private markets fund manager to track. Congratulations to all! #alternativeassets #privatemarkets #fundraising #emergingmanagers #fundmanagers #capitalmarkets #limitedpartners #institutionalinvestors #privateequity #middlemarket https://lnkd.in/gQb8NttE

While giants like Ardian and Lexington Partners claim the secondaries spotlight, smaller players are quietly making a splash in the lower end of the market. Case in point: CF Private Equity, the PE arm of asset management firm Commonfund, which earlier this month closed its fourth secondaries fund at $1.1bn, surpassing its $750m target. Despite the challenging fundraising environment for PE at large, the firm's latest fund demonstrates the continued appeal of secondaries as a diversification strategy and entry point into private equity for high-net-worth individuals and family offices. The vehicle, Commonfund Capital Secondary Partners IV, significantly outperformed its predecessor, which closed at $675m in 2021. Cari Lodge, global head of secondaries at CF Private Equity, recently shared with Secondaries Investor that the fresh capital is expected to be deployed within the next three years, focusing on small deals in the $5m-$15m range, primarily in the US and Europe. The firm believes that the small end of the secondaries market offers the most opportunities and inefficiencies, with sellers being less price-sensitive due to the smaller impact on their portfolios. Read the full interview: https://lnkd.in/gMAmTX5c #privateequity #PE #secondaries