Crossplane Capital has held a first and final closing of its second investment fund, Crossplane Capital Fund II LP, above its $325 million target.
Crossplane invests control equity in companies that have up to $15 million of EBITDA that are either family-owned and seeking a partner or involved in a complex situation. Sectors of interest include niche manufacturing, value-added distribution and industrial business services companies.
“We are grateful and humbled by the significant interest from existing and new investors in Crossplane, which allowed us to raise Fund II in three months,” said Brian Hegi, a managing partner of Crossplane. “Given our focus on the lower middle market, we limited the size of Fund II, which is made up of our existing investors and a select number of new investors that have been close to our firm since our founding.”
Since the first closing of Crossplane’s inaugural fund in July 2019, the firm has closed 6 platform investments and 20 add-on acquisitions.
“Crossplane has built a brand for being a value-added financial and operational partner to families, founders and management teams that seek transformational growth,” said Ben Eakes, a managing partner at Crossplane. “Through Fund II, we look forward to establishing new management partnerships where we can leverage our operational and strategic toolkits to create step-function improvements in financial and operational performance.”
Dallas-headquartered Crossplane was founded in October 2018 by Mr. Hegi and Mr. Eakes, both are former managing directors of Prophet Equity, and joined at formation by Partner Mike Sullivan and Operating Partner Ingrid West.
Messrs. Hegi, Eakes and Sullivan are all former managing directors of Prophet Equity, and Ms. West is the former president of Acton Mobile, a Baltimore-based provider of modular space and portable storage products. Acton Mobile was acquired by Prophet Equity in 2014 and sold to publicly traded Williams Scotsman (NASDAQ: WSC) for $235 million in cash in 2017.
With the closing of Fund II, Crossplane has now raised over $730 million in capital since its founding in 2018, including co-investment vehicles.
Akin Gump Strauss Hauer & Feld provided legal services to Crossplane on the raising of Fund II.
© 2022 Private Equity Professional | July 14, 2022
