Rotunda Beats Target on First Institutional Fund

Rotunda Capital Partners has closed its debut institutional private equity fund, Rotunda Capital Partners Fund II LP, with over $195 million of capital commitments. The new fund’s original target was $175 million.

Limited partners in Fund II include insurance companies, hospital systems, foundations, funds of funds, family offices, and corporate executives of companies where Rotunda’s professionals had previously invested.

Rotunda was founded as an independent sponsor in 2009 and is led by managing partner John Fruehwirth, and partners Dan Lipson, Corey Whisner, and Bob Wickham. With the closing of Fund II, Rotunda now has over $350 million of capital under management.

“We are grateful for the strong investor support we received in closing our debut institutional fund above our target in an uncertain market environment,” said Mr. Fruehwirth.

Rotunda invests in businesses with enterprise values of $30 million to $150 million. Sectors of interest include asset light logistics, value-added distribution, specialty finance, and industrial and business services.

Rotunda currently has eight companies in its portfolio including:

  • Trinity3 Technology, a Minnesota-based provider of technology and support services to the K-12 and higher education sector (November 2019);
  • MacQueen Equipment, a Minnesota-based distributor of industrial and emergency equipment (November 2019);
  • StreetShares, a Virginia-based provider of financial services – loans, lines of credit and government contract financing – to veteran owned small businesses (January 2018);
  • FreshEdge, a company formed by Rotunda in August 2019 to consolidate its investments in several produce and specialty food distributors including McCartney Produce, Get Fresh Produce, IF&P Foods (Indianapolis Fruit and Piazza Produce), Garden Cut, CIBUS Fresh, and Papania’s;
  • Microf, a Georgia-based provider of consumer financial services (rent-to-own) to support the cost of replacing residential heating and cooling systems (May 2015);
  • Amware Logistics, a Georgia-based provider of B2B and B2C third-party logistics and order fulfillment services (May 2014);
  • Motis Brands, a company formed by Rotunda in May 2019 to combine Race Ramps (Escanaba, Michigan) and Discount Ramps (Germantown, Wisconsin), makers and online retailers of ramps, lifts, covers, carriers, roof bars, and bike racks used in powersport, medical, and recreational applications. Rotunda first invested in Discount Ramps in January 2014; and
  • Rubicon Global, a software-based provider of third-party waste and recycling services to businesses and governments (April 2012).

Rotunda is headquartered in Bethesda, Maryland with an additional office near Chicago in Evanston, Illinois. In addition to its four partners, Rotunda has a staff of eight other private equity professionals.

“Our investors have provided guidance and support as we seek to expand and implement the Rotunda thematic sourcing and operational improvement model,” added Mr. Lipson. “We are excited to continue to find management teams to support and great companies to buy.”

UBS Securities was the placement agent for this fundraise and Kirkland & Ellis provided legal services.

© 2021 Private Equity Professional | January 22, 2021

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