The Beekman Group has held a final closing of its second investment fund, Beekman Investment Partners II, with $100 million in equity commitments. The new fund had a 90% re-commitment rate from its first fund investors.
“We are pleased to have raised $100 million in the current environment and to have surpassed our debut fund by over 40%” said John Troiano, founder and managing partner of The Beekman Group. “We credit our focused strategy, top quartile returns, and experienced investment team for this and appreciate the strong support from our existing limited partners and from our new investors.”
Sparring Partners served as the exclusive placement agent to The Beekman Group for this fundraise. Sparring is a FINRA registered broker-dealer and has been a placement agent for top buyout, growth equity and venture firms. Sparring also assists clients in equity and debt capital raising and sell-side M&A advisory. The firm is based in New York (www.sparringpartners.com).
The Beekman Group’s first fund closed in 2006 with approximately $70 million in commitments and has made over a dozen platform investments and add-on acquisitions. Fund 2 will continue the strategy employed by its first fund, investing in lower middle-market services companies with enterprise values ranging from $15 million to $75 million in four industry sectors – consumer, healthcare, business and financial services. Fund 2 has made two investments to date, and will seek to make six to eight additional platform investments during its investment period.
Beekman takes an active role in working with management and guiding its portfolio companies’ growth initiatives and improving operations. For example, in October 2012 Beekman sold Northwestern Management Services (NMS), a dental practice management company and a Fund 1 portfolio company, to Linden Capital Partners. The Beekman Group acquired NMS in December 2007 and during the nearly 5-year investment period the NMS platform grew from 10 to 21 fully-operational dental locations, more than doubling revenues and tripling profitability. The sale of NMS generated a 6x return on invested capital for both Beekman and members of the NMS management team.
“The current environment is attractive for identifying unique lower middle market businesses and providing capital for growth and acquisitions. Our success is built on bringing a comprehensive set of resources to help existing management teams further professionalize and expand their companies” said Mr. Troiano. “We look forward to continue working with these management teams and growing our businesses together.”
The Beekman Group makes control investments from $5 million to $25 million in privately held companies, family businesses in transition, operating divisions of large companies or small public entities interested in privatization. Typical acquisitions have revenues from $10 million to $200 million. The firm’s investment team is led by Mr. Troiano, formerly with Onex Corporation, and by Managing Directors Andrew Marolda and Andrew Brown. The Beekman Group is based in New York (www.thebeekmangroup.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-16-13