KarpReilly, a consumer-focused lower middle market private equity firm, has held a final closing of KarpReilly Capital Partners II, L.P. (“KRCP II”) with total capital commitments of approximately $210 million.
In conjunction with the closing of this second fund, KarpReilly also closed KarpReilly Co-Investment Fund II, L.P., with approximately$150 million of additional capital. The co-investment fund provides KarpReilly access to additional equity capital to pursue larger investments, when appropriate, and is funded by KarpReilly’s limited partners.
KarpReilly’s new fund will pursue the same strategy as its first fund, raised in 2008 – investing in consumer growth companies at the lower end of the middle market through a variety of transaction types including growth equity, management buyouts, acquisition financings and recapitalizations. The firm’s investment size is from $10 million to $75 million of equity capital. Industries of interest include building products; business services; consumer brands; health care services; retail; and restaurants (www.karpreilly.com).
KRCP II, which launched officially in April 2012, was heavily subscribed by existing investors and also received commitments from a number of new limited partners, resulting in a well-diversified investor base.
KRCP II has already made two investments in high-growth consumer businesses: EbLens, a New England-based retailer of urban footwear and apparel with 36 units in Connecticut, Massachusetts, Rhode Island and New York (www.eblens.com); and Sprinkles, a retailer of premium cupcakes, ice cream and cookies (www.sprinkles.com).
Allan Karp and Chris Reilly founded KarpReilly in 2007 to provide not just capital and financial expertise, but strategic board level advice and stewardship to help portfolio companies execute on their long term growth plans. “It is an exciting time for KarpReilly and our investors. We have built a leadership position as a value added capital investor to high growth consumer companies. Fund II will allow us to continue to execute this investment strategy and to have the opportunity to create significant value for our investors,” said Mr. Reilly.
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-24-13