Prelude Partners, a new middle-market private equity firm, has closed Prelude Partners Fund, LLC, the firm’s inaugural fund. The new fund was oversubscribed despite a limited offering to a small circle of prominent investors.
Prelude will invest up to $30 million in equity capital in companies with $10 million to $50 million in annual revenue and at least $2 million in EBITDA. Founder-owned companies are of particular interest to Prelude. “The approaching wave of retiring business owners is larger than many people realize. Closely-held and family-owned businesses are facing critical decisions regarding their future and legacy—and we offer a unique solution,” said Tanner Ainge, Prelude’s founder and Managing Partner.
Sectors of particular interest for Prelude include services companies including healthcare services, insurance, education, corporate & legal services, and other niche sub-verticals. Businesses with significant recurring revenue are also desired.
Prelude’s investor group is comprised of a small circle of prominent business leaders, including a handful of entrepreneurs and executives that grew small and medium sized businesses into multi-billion dollar enterprises, faculty members from Stanford Graduate School of Business, and founders of top-performing private equity firms. “Our investor group will form the board of the company we acquire,” added Mr. Ainge, “and they will be the perfect guides since most of them have previously served as senior managers of businesses that achieved incredible success.”
According to Mr. Ainge, the firm’s methodology is attractive to founders because Prelude sees the company and transaction as much more than just a collection of financials, documents, strategies and models. “When we acquire a business, our sole focus for the next decade becomes to preserve and grow the business, while keeping its culture, values and reputation intact,” continued Mr. Ainge. “We don’t just invest money. I will personally relocate and devote 100% of my time to ensure a smooth succession is carried out according to plan.”
Prelude is headquartered near Anaheim in Irvine, CA (www.prelude.partners).
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-23-16
