ZMC Closes at Hard Cap

After just seven months of fundraising, ZMC has held a final close of ZMC III LP and ZMC III Parallel LP (together Fund III) with total capital commitments of $775 million. The new fund was substantially oversubscribed, exceeded its $650 million target, and closed at its hard cap.

Both existing and new limited partners invested in Fund III including public and private pension funds, insurance companies, endowments, foundations, financial institutions and family offices.

New York City-headquartered ZMC was founded in 2001 and is an active investor in the media and communications sectors.  “Fund III will build on ZMC’s established investment strategy of leveraging its industry focus and operational expertise throughout all phases of an investment,” said Andrew Vogel, co-chief investment officer and managing partner. “The media and communications sectors are highly dynamic, and we believe that ZMC continues to be well-positioned to produce above-market returns for our investors.”

The raising of Fund III follows the firm’s second fund, ZMC II LP, which closed with total commitments of $415 million in September 2016. The firm has not yet closed any investments for Fund III, but its Fund II investments include:

  • 9 Story Media Group, a Toronto-headquartered content creator, marketer and distributor of children and family-focused intellectual property (acquired in 2014);
  • Education Networks of America, a Tennessee-headquartered provider of managed IaaS services to K–12 schools and libraries (acquired in 2016);
  • AdThrive, a Florida-headquartered provider of advertising monetization services and technology to bloggers and independent online publishers (acquired in 2018);
  • Dynasty Sports & Entertainment, a Florida-based provider of technology-driven services to professional sports franchises and colleges to maximize event ticketing revenue (acquired in 2018);
  • ITRenew, a California-headquartered provider of data center decommissioning, data erasure and security services (acquired in 2018); and
  • CommentSold, an Alabama-based provider of social commerce technology and managed services to online retailers (acquired in 2019).

“We look forward to continuing our long history of partnering with strong management teams in market-leading and differentiated businesses which we believe present significant value-creation opportunities,” added Jordan Turkewitz, co-chief investment officer and managing partner.

ZMC did not use a placement agent for Fund III and Kirkland & Ellis provided legal services.

© 2019 Private Equity Professional | November 21, 2019

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