Investcorp has closed its second North American Private Equity fund with $1.22 billion in commitments, exceeding its $1.1 billion target. North American Private Equity Fund II focuses on growth-oriented middle-market businesses across the business and professional services and commercial services sectors.
The fund attracted institutional investors from North America, Europe, the Middle East and Asia.
Investcorp’s North American Private Equity strategy also makes extensive use of co-investments. Limited partners in Fund I invested more than $1 billion of fee-free co-investment equity alongside the fund.
Fund II targets companies with between $10 million and $50 million of EBITDA operating in sectors characterized by relatively stable demand, fragmentation and long-term growth trends.
The fund has already invested in Guardian Fire Services, a Nashville-based fire protection and life safety services company, and Berger Financial Group, a Plymouth, Minnesota-based registered investment adviser.
Guardian has completed acquisitions of Midwest Protection Services and Houston Fire & Safety since Investcorp’s investment.
Investcorp said the Berger investment followed a multi-year effort to identify an opportunity in the wealth management sector.
The fund closing follows the appointment of Dale O’Connell as Head of Investor Relations and Fundraising for the North American Private Equity business.
Investcorp’s North American Private Equity group has invested in middle-market companies for more than 40 years and has completed more than 75 investments representing more than $25 billion in transaction value.
KEY QUOTES:
“The United States is Investcorp’s largest market and remains central to our global growth strategy. For more than four decades, we have built deep investment capabilities and relationships across the U.S., particularly in the middle market, where we continue to see compelling opportunities to create long-term value. The successful close of Fund II is also a strong reflection of the trust that leading institutional investors around the world place in Investcorp, our people and our investment approach. We are grateful for that confidence and remain focused on deploying capital with discipline and delivering sustainable value for our investors.”
Mohammed Alardhi, Executive Chairman of Investcorp
“The successful close of NAPE’s Fund II is an important milestone for our business, as it increases the capital we have to deploy into leading business and professional services and commercial services companies looking to embark on the next stage of their growth journey. Our team’s ability to secure commitments from both existing and several new LPs, despite a challenging fundraising environment, is a testament to our track record as a trusted partner and steward of our investors’ capital. We want to sincerely thank all our partners that have continued to support and grow the NAPE franchise.”
Steve Miller, Senior Managing Director and Co-Head of North American Private Equity at Investcorp
“Investcorp is deliberate and diligent in its pursuit of investment opportunities and both of Fund II’s current investments, Guardian Fire Services and Berger Financial Group, are led by experienced management teams, enjoy strong market positions and have a significant opportunity to create value through accelerated M&A. As we look ahead, we plan to invest in more internal resources to expand our value creation capabilities and bring artificial intelligence resources to our portfolio companies. We believe that finding established incumbents in our core verticals, and embedding them with AI capabilities, will be a winning formula going forward and result in attractive investment outcomes.”
Nicky McGrane, Senior Managing Director and Co-Head of North American Private Equity at Investcorp
