L Squared Capital Partners recently announced that it held the final closing for its fourth private equity fund at $840 million. And L Squared fully committed its $505 million third fund earlier this year with the investment in ERA Industries.
Since its founding in July 2014, L Squared has now raised four funds and accepted commitments of over $2 billion from its investors. And this funding round received strong support from existing investors. It was supplemented by several new high-quality limited partners that included both institutions and additional large family offices, both domestically and internationally.
So far, L Squared has completed 17 platform investments and is in the process of closing its 50th add-on transaction, acquiring over $3 billion of enterprise value. And all investments have been made within the firm’s sectors of focus, including Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. The vast majority of these deals have been completed with founder-led companies undergoing their first institutional transaction.
The firm has also completed several exits thus far across Funds I and II. And L Squared currently manages ten platform investments across its predecessor three funds. L Squared intends to add eight to ten new platform investments within Fund IV while continuing to manage the Firm’s portfolio from its predecessor funds. The firm will also continue to focus on majority investments in growing companies based in North America that operate in its focus sectors.
To support the continued growth, L Squared added four highly talented individuals to its investment team at the Vice President and Associate levels and has continued investing in the firm’s back office by adding a Vice President of Finance. And L Squared is also delighted by the continued progress of its long-tenured team members as their careers continue to flourish. L Squared will continue to add talent to the organization selectively.
L Squared’s relationships with existing investors drove high investor retention in Fund IV from prior funds. Also, they opened the path to several new investors as introductions were made within the firm’s network. And L Squared’s unique structure attracted several new family office investors in Fund IV and new institutional investors who valued L Squared’s unique private equity model and long-term track record of value creation in partnership with its portfolio company management teams.
The firm is managed by Rob Healy, Jeff Farrero, Sean Barrette, Randall Hunt, and Adam Kimura – all of whom worked together at Chicago Growth Partners before founding L Squared in July 2014.
KEY QUOTE:
“The strong growth in our business in a somewhat more challenging economic environment is a great testament to the hard-working management teams that run our businesses. We could not do what we do without their tremendous dedication to excellence. All of us at L Squared owe them a debt of gratitude. We are also humbled and honored by the incredible support that we received from our investors. We plan on working very hard to ensure their capital is invested wisely in growth businesses within our areas of expertise.”
— L Squared Co-Founder and Managing Partner Rob Healy
