Multi-Strategy Paceline Closes Fund

Paceline Equity Partners has held a final closing of Paceline Equity Partners Opportunity Fund I LP and a sister fund with $350 million of total capital.

Institutional investors in Fund I include sovereign wealth funds, public pension funds, university endowments, family offices and funds of funds from North America, Europe, and the Middle East.

Dallas-based Paceline invests in opportunistic and special situations across three strategies – corporate credit, real assets, and private equity. The firm was founded in 2019 by seven professionals who previously worked together at private equity investor Lone Star Funds and its Hudson Advisors affiliate.

“It is the trust and confidence of our investor base that allows Paceline to navigate this highly complex investment environment with conviction and agility,” said CEO Sam Loughlin. “We are grateful for the opportunity to source and manage investments on behalf of our limited partners, and I firmly believe that our team’s collective experience has enabled us to do so in a way that differentiates us from other managers.”

In addition to its new Fund I capital, Paceline manages $64 million of third-party capital which is available to invest alongside Fund I, and it has a $35 million co-investment partnership with other investors.

To date, Paceline has closed five acquisitions totaling approximately $300 million of transaction value including RELAM and 1435 Rail, Ohio-based lessors of rail maintenance of way equipment and track maintenance services (January and July 2020); Quick Fitting, a Rhode Island-based manufacturer of connection and fitting devices used in plumbing, electrical, and HVAC applications (November 2020); a retail cooperative space in Manhattan’s SoHo neighborhood (March 2021); and a 247-room Sheraton Hotel located near Boston in Needham, Massachusetts (February 2021).

“The cohesive system of sourcing, underwriting and asset management that we have built at Paceline allows us to maintain a competitive advantage in our opportunity set,” said Chief Investment Officer Leigh Sansone. “We are grateful to our investor base and are highly motivated to continue our work in delivering excellent results on their behalf.”

PJT Park Hill was Paceline’s placement agent on this fundraise and Winston & Strawn provided legal services.

© 2021 Private Equity Professional | June 4, 2021

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