L2 Point Management, a private investment firm that provides innovative capital solutions to growth-stage companies, announced the closing of its inaugural structured equity fund, L2 Point Opportunities I, L.P., at about $312 million, surpassing its $300 million target. The fund’s capital (combined with capital raised by L2 Point for related co-investment vehicles) totals nearly $460 million.
The fund’s investor base features leading institutions, such as public pension plans, foundations, insurance companies, funds of funds, and high-net-worth individuals.
L2 Point is a woman- and Latina-owned and led business founded by Managing Partner and Chief Investment Officer Kerstin Dittmar. And L2 Point utilizes its expertise across the capital structure and an out-of-the-box structuring approach to tailoring financing solutions that seek to optimize the cost of capital for companies across the technology-enabled, consumer, healthcare, and media sectors.
The firm’s strategy looks to provide investors exposure to growth companies with mitigated downside risk through structural protections, contractual returns, and meaningful upside potential through equity participation.
Since being founded, L2 Point has raised over $500 million of capital commitments. And the firm’s investments to date include SimSpace, a market leader in military-grade cyber ranges; Wasabi Technologies (a provider of affordable, predictable, and secure cloud storage solutions); Fabletics (the world’s largest digitally native activewear brand); and Revolution Foods (a provider of healthy, freshly prepared meals to students, families, and communities).
PJT Park Hill worked as a placement agent to L2 Point in connection with the fundraise. And Proskauer Rose worked as legal counsel.
KEY QUOTE:
“Late-stage growth companies today are faced with a dilemma: sell equity in their business and incur permanent and costly dilution, or take on operationally restrictive debt. At L2 Point, we seek to provide a better, alternative solution that enables companies to minimize dilution while continuing to invest in attractive growth opportunities. In the current market environment, where companies are staying private for longer and valuations are resetting, we believe an exceptional opportunity exists to serve as a partner of choice to management teams navigating the challenges and possibilities of today and tomorrow. We are grateful for the support of our limited partners, who see the value of our differentiated structured equity strategy.”
– Kerstin Dittmar
