Charlesbank Hits Hard Cap

Charlesbank Capital Partners has held a final closing of its newest flagship fund, Charlesbank Equity Fund X LP, at its hard cap with $3.75 billion of capital. Fundraising for the new fund was launch just six months ago. Charlesbank’s previous flagship fund closed in October 2017 with capital commitments of $3 billion.

In tandem with the close of Fund X, Charlesbank also closed Charlesbank Equity Fund X Overage Fund LP with $800 million of capital. The new overage fund will be used by Charlesbank to invest in transactions that require larger amounts of capital.

Fund X received strong support from Charlesbank’s existing investors who represented 94% of capital commitments. Limited partners include more than 150 pension funds, endowments, foundations, family offices, asset management firms, and financial institutions.

“While the market landscape is dynamic and ever-changing, we believe the ingredients for generating strong returns remain largely the same: rigorous discipline rooted in fundamentals, a consistent team united by a deeply ingrained culture of collaboration, and an agile and forward-thinking model driven by deep pattern recognition in our target sectors,” said Michael Choe, Charlesbank’s CEO and managing director. “We believe our investment approach is ideally suited to respond to the wide range of market conditions that we are likely to see over the next several years, and we are deeply grateful for the confidence our investors have placed in us to do so.”

“We are privileged to have the longstanding support of an exceptional group of investors,” added Maggie Littlefield Sahlman, the head of investor relations at Charlesbank. “We thank all our limited partners for the flexibility with which they adapted to a remote fundraising process and for their continued partnership through this global pandemic.”

Charlesbank, with offices in Boston and New York City, invests up to $500 million per transaction in management-led buyouts and growth capital financings in companies with enterprise values of $150 million to $3 billion. Sectors of interest include business services, consumer, healthcare, industrial and technology.

Since its founding in 1998, Charlesbank has now raised more than $15 billion of commitments across its three investment strategies.

In addition to Fund X, Charlesbank is currently investing its second Credit Opportunities Fund (COF), which held a final hard-cap close in July 2020 with limited partner commitments of $700 million. The COF makes credit investments in North America-based middle-market companies with enterprise values between $150 million and $1.5 billion. In 2019, Charlesbank launched a technology strategy and closed its first technology fund in January 2020 with $845 million in limited partner commitments.

Goodwin Procter provided legal services to Charlesbank on Fund X and the Overage Fund.

© 2021 Private Equity Professional | February 5, 2021

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