Plexus Capital has announced the final closings of two significant funds: Plexus Fund VII and Plexus Equity Fund II. This announcement comes ahead of schedule and exceeds initial fundraising goals, signaling a strong demand for Plexus’ investment strategies. Together, these new funds have secured more than $1.3 billion in total capital, reinforcing Plexus’ two-decade commitment to partnering with profitable lower middle market businesses in the US.
Plexus Fund VII has successfully raised a total capital of $977 million, which includes fund-level leverage, surpassing its original target of $750 million. The fundraising for this fund took place over a span of five months, from the first to the final closing. Fund VII continues Plexus’ structured capital strategy, which combines debt investments with equity ownership in profitable companies that generate between $10 million and $100 million in revenue and have earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from $2 million to $12 million.
Consistent with previous structured capital funds, Fund VII is designed to partner with independent sponsors, search funds, private equity groups, and management teams to support small business growth.
In addition, Plexus Equity Fund II has also shown remarkable success. This fund was oversubscribed and reached its hard cap, raising $345 million against an initial target of $250 million. The fundraising process for Equity Fund II lasted three months from its first to final closing. This fund represents the second initiative for Plexus’ control buyout strategy, which was launched in 2021.
It follows a thesis-driven approach to sourcing, acquiring, and enhancing value in companies primarily operating within the business and essential services industries. Equity Fund II is focused on deploying between $15 million and $40 million of equity per investment, providing substantial support for targeted acquisitions and business growth.
Legal: Kirkland & Ellis and Winston & Strawn served as legal advisors to Plexus.
KEY QUOTE:
“Plexus is proud of the long-term relationships built with our investors and portfolio company management teams, as well as the culture we’ve established over our 20-year history, which centers on transparency, accountability, and following through on our commitments. Combined with our disciplined investment approach and track record across market cycles, this partnership mentality seemed to resonate with our investors in a challenging fundraising environment. We are grateful for the overwhelming support from our existing investors and pleased to welcome several new institutional investors in both funds.”
Alex Bean, Plexus Partner
