Tailwind Capital has held a final closing of Tailwind Capital Partners III LP with $1.8 billion of commitments. The new fund exceeded its initial target and was oversubscribed.
Fund III received commitments from existing and new investors, including pension funds, insurance companies, endowments and foundations, family offices and high net worth individuals based in North America, Europe, and Asia.
“We are gratified by the strong support we received from our existing investors, and are excited to welcome many new limited partners to the firm. The significant demand for Fund III is a testament to the strength of our track record and our team,” said Larry Sorrel, Tailwind Managing Partner.
Since its founding in 2003, Tailwind has managed $3.6 billion of committed equity capital and has invested in 38 portfolio companies and over 65 add-on acquisitions. Tailwind’s earlier fund, Tailwind Capital Partners II LP, closed with $1.05 billion of capital in June 2015. Tailwind’s first fund was raised in 2009 with $775 million of capital.
Fund III will pursue the same investment strategy Tailwind has employed since its inception by investing from $25 million to $100 million of equity in middle-market companies that have enterprise values of up to $300 million and EBITDA from $10 million to $30 million. Sectors of interest include healthcare, business services and industrial services.
Fund III has already completed four platform investments. In May 2018 it acquired Seattle, WA and Durango, CO-based Abode Healthcare (www.abodehealthcare.com), a provider of hospice and home health services across 10 states; in September 2018 it acquired Indianapolis-based Core BTS (www.corebts.com), a provider of technology services to corporate and government clients; and in November 2017 it acquired Commerce, CA-based Smith-Cooper International (www.smithcooper.com), a distributor of steel, iron, brass, bronze, and stainless steel valves and fittings.
Credit Suisse Securities (USA) was the placement agent for this fundraise and Davis Polk & Wardwell provided legal services.
Tailwind Capital is based in New York (www.tailwind.com).
© 2018 Private Equity Professional | September 24, 2018