Rothschild Closes New US Mid-Market Fund

Rothschild Merchant Banking, the investment arm of Rothschild & Co, has held a final closing of Five Arrows Capital Partners (FACP or the Fund), its first corporate private equity vehicle in the United States.

The new fund closed above target with total capital commitments in excess of $655 million. Limited partners include a global group of institutions, corporations, international family offices and entrepreneurs. Rothschild & Co, the partners and senior staff of the firm, and the Fund’s investment executives have also made a substantial commitment to FACP.

FACP is led by its co-founding partners Ari Benacerraf and Adam Lehrhoff and is based in New York. The new fund will invest from $30 million to $70 million of equity per transaction in North American-based lower middle-market companies that have enterprise values between $75 million and $500 million. Sectors of interest include health care, data and software, and business services with a particular focus on those companies that have scope for increased use of technology.

To date, FACP has completed two platform investments. In December 2017 it acquired The Stepping Stones Group, a provider of therapy and education services to children with special needs/autism in educational settings. The Fund’s second investment was completed in April 2018 with the buy of Datix, a provider of web-based incident reporting and risk management software for healthcare and social care organizations.

“I am delighted that Five Arrows Capital Partners has received such strong support from both existing investors in our various funds, as well as investors new to our platform,” said Marc-Olivier Laurent, Head of Rothschild Merchant Banking. “This support is yet another endorsement of the highly specific investment philosophy which we have worked hard to build over the last decade in Europe. I am confident that under the leadership of Ari Benacerraf and Adam Lehrhoff, the two co-founding partners of the Fund, we will bring the discipline and rigor needed for Five Arrows Capital Partners to deliver the type of risk-reward proposition that our investors expect from us.”

FACP is the 13th fund raised by Rothschild Merchant Banking (the investment arm of Rothschild & Co) over the last 10 years, which brings total assets under management to more than $10 billion across four strategies: corporate private equity; senior and junior credit; primary and secondary fund of funds; and co-investments. Rothschild Merchant Banking has offices in New York, Los Angeles, London, Paris and Luxembourg.

For more on FACP or Rothschild Merchant Banking’s corporate private equity activities click HERE.

© 2018 Private Equity Professional | September 21, 2018

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