Gryphon Investors has held a final closing of Gryphon Partners IV, LP at its hard cap of $1.1 billion. The new fund was oversubscribed and exceeded its original target of $600 million.
“We greatly appreciate the enthusiastic support we received from our existing and new investors. The LP market’s confirmation of Gryphon’s unique integration of specialized deal and operating professionals from investment origination through exit to generate substantial alpha on a consistent basis was especially gratifying,” said David Andrews, Gryphon’s Founder and CEO.
Investors in the new fund include domestic and international pension funds, insurance companies, asset managers, foundations, and high net worth families. Approximately 80% of the institutional investors from Gryphon’s prior fund re-upped in Gryphon IV at an average of more than twice their prior commitments. Gryphon’s third fund raised $415 million in 2006.
“Achieving such a successful fundraise, while also completing five new platform investments totaling over 40% of Gryphon IV’s capital and multiple substantial exits, is especially rewarding,” said Nick Orum, Co-founder and President. “This achievement speaks to the unusual depth and capabilities of our team for a lower middle-market firm.”
Gryphon makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $150 million of capital in companies with sales ranging from $50 million to $500 million. Sectors of interest include business services; consumer products and services; general industries including specialty chemicals, niche manufacturing, value-added distribution, and industrial technology; and health care.
Fund IV’s current portfolio consists of The Original Cakerie – a manufacturer of frozen desserts sold into the North American retail and foodservice sectors (acquired in December 2015); JENSEN HUGHES – a provider of fire protection engineering and consulting services (December 2015); CORA Health Services – a provider of outpatient physical therapy services (July 2016); Smile Brands – a provider of support services to dental practices (August 2016); and HEPACO – a provider of emergency and planned environmental services (August 2016).
Gryphon Investors is based in San Francisco (www.gryphoninvestors.com).
© 2016 Private Equity Professional
November 29, 2016