Middle-market investor GI Partners has held an oversubscribed and above target closing of GI Partners Fund VI LP with $3.9 billion in total commitments. The firm’s earlier fund closed at its hard cap in November 2017 with $2.8 billion in capital.
Limited partners in Fund VI include sovereign wealth funds, pensions, financial institutions, investment management firms, and family offices from 15 countries.
“Our limited partners have demonstrated conviction in our resilient strategy, team and leadership, and operating principles,” said Philip Yau, a managing director at GI Partners. “We are grateful for their support and thank them for the opportunity to be stewards of their capital.”
GI’s new fund continues the firm’s focus on control equity investments of up to $900 million in companies with enterprise values up to $2 billion that are active in the IT infrastructure, healthcare, software, and services sectors. GI’s private equity team has over 35 investment professionals and is led by Managing Directors Hoon Cho and Travis Pearson.
“Our firm’s 20-year focus on investing in downside-protected growth companies has proven as effective in the past 15 months as it has in prior economic crises,” said Messrs. Cho and Pearson in a released statement. “Throughout the recent challenging environment, our team worked closely with our portfolio companies to ensure they not only withstood the impact of COVID-19 but continued to grow. The private equity group has remained active, adding five new platform investments and exiting three companies while focusing on developing a strong portfolio that builds on our team’s proven track record of value creation.”
Fund VI began investing in November 2020 with the buy of Valet Living, a Tampa-based provider of multi-family residential services, from Ares Management and Harvest Partners. Valet Living’s services include doorstep waste and recycling collection, maintenance services, apartment cleaning, apartment turns, porter services, pet services, and other app-driven on-demand amenity services. The company’s customers include both property managers and residents, and it serves more than 1.6 million homes across 40 states.
Following the acquisition of Valet Living, in April 2021 the firm acquired Aras, a Massachusetts-based provider of a cloud-based IT platform that is used for digital industrial applications – product development, systems engineering, manufacturing, and maintenance – in the automotive, aerospace & defense, high tech, and industrial sectors.
GI has also been active on the sale side having completed exits for portfolio companies MRI Software, an Ohio-based provider of commercial and residential real estate software applications; Consilio, a Washington DC-headquartered provider of eDiscovery and outsourced legal services; and Logibec, a Montreal-based provider of clinical and administrative information systems to healthcare companies.
“As we celebrate our firm’s 20th anniversary, we move forward with a deep team of dedicated professionals who are integral to our continued success,” said Rick Magnuson, GI’s executive managing director and founder. “We remain committed to delivering value for our investors by utilizing our disciplined and differentiated strategy that we have refined since our founding.”
Park Hill Group was engaged as the placement agent for Fund VI and Kirkland & Ellis provided legal services.
GI Partners was founded in 2001 and is headquartered in San Francisco.
© 2021 Private Equity Professional | June 22, 2021