TruArc Partners has closed TruArc Partners Fund V with $1.2 billion in capital commitments, exceeding its $1.1 billion target. The fund also closed substantially above the $840.1 million raised for its predecessor vehicle.
Fund V includes the main investment fund and its related parallel funds. The vehicle will continue TruArc’s strategy of investing in middle-market companies across specialty manufacturing and business services.
The fund received commitments from a geographically diverse group of investors, including family offices, asset managers, funds of funds and insurance companies. TruArc said the close included significant participation from existing limited partners as well as commitments from new institutional investors.
TruArc focuses on companies operating in specialized market segments where additional capital and operational support may help accelerate growth. The firm generally partners with experienced management teams and seeks to strengthen portfolio companies through both internal initiatives and acquisitions.
Its investment approach is organized around sector selection, strategy and transaction execution. TruArc’s senior investment professionals have collectively led approximately $3.4 billion of private equity investments, including co-investments, across 24 platform companies.
The firm is supported by 37 investment and operating professionals. These teams work with portfolio company executives to identify opportunities to introduce new products and services, expand sales channels and enter additional geographic markets.
TruArc also uses strategic acquisitions to broaden the scale and capabilities of its portfolio companies. This approach may include acquiring complementary businesses, entering adjacent market segments or consolidating fragmented industries.
Fund V gives the firm additional capital to pursue new platform investments and support follow-on acquisitions. TruArc plans to maintain its focus on specialty manufacturing and business services companies that it believes have defensible market positions and long-term growth opportunities.
The fund’s final size represents an increase of approximately $359.9 million from Fund IV. Closing above the initial target indicates that investor commitments exceeded the amount TruArc originally intended to raise.
Lazard served as the exclusive global placement agent for Fund V. Davis Polk & Wardwell provided legal counsel.
KEY QUOTE:
“We are extremely grateful for the support from our long-time investors and delighted to welcome a distinguished group of new institutional investors to the fund. We believe the strong re-up participation from our existing investors, together with the influx of new investors, reflects confidence in TruArc’s team, disciplined investment approach, and our focus on the specialty manufacturing and business services sectors.”
“Fund V will continue our mission to identify attractive companies with experienced management teams and employees where we believe our capital can help support growth and strengthen their competitive position over time.”
Ogden Phipps, John Pless and Alan Mantel, Co-Managing Partners of TruArc Partners
