Falfurrias Closes Oversubscribed Fifth Fund

Falfurrias Closes Oversubscribed Fifth Fund

Charlotte-based firm has closed six investments over the past year

Falfurrias Capital Partners (FCP) has closed its oversubscribed fifth fund, Falfurrias Capital Partners V LP, with $850 million of capital.

FCP’s earlier fund, Falfurrias Capital Partners IV LP, closed in 2019 with $500 million of capital. The firm was founded in 2006 by Hugh McColl Jr., former chairman and CEO of Bank of America, Marc Oken, former CFO of Bank of America, and Managing Partner Ed McMahan.

FCP makes equity investments in growth-oriented middle-market companies that have EBITDA from $5 million to $40 million. The firm invests across a range of sectors and through its “Industry First” investment strategy is currently seeking investments in packaged foods; private equity-related software and services; fraud and credit risk analytics; finance-related technology-enabled services; marketing, media, and information services; and electric utility supply chains. Numerous other sectors of interest are currently being evaluated by FCP.

“The success of our fundraising validates the strength of our team and our theme-based, Industry First investment strategy, which allows us to identify and partner with differentiated businesses in durable growth markets,” said Mr. McMahan. “With this funding, we’re well-positioned to provide the support these companies need to grow and scale.”

FCP has invested in a number of companies this summer including H Code, a California-headquartered digital media company (August 2021); Chargeback Gurus, a Texas-based provider of chargeback prevention and recovery services (August 2021); and Training the Street, a New York City-headquartered provider of instructor-led courses in accounting, capital markets, financial modeling and valuation (June 2021).

Three other recent investments include Carolina Foods, a North Carolina-based baker of honey buns, donuts, pies and pastries (April 2021); Crosslake Technologies, a Washington-based provider of technical due diligence services to private equity firms (January 2021); and Ballast Research, a Washington DC-headquartered provider of information services to government affairs professionals at Fortune 500 companies and trade associations (December 2020).

“Over the past 15 years, we have patiently assembled the best platform in lower middle-market private equity and, as a result, have attracted an enviable list of investors,” said Mr. Oken. “We are energized by the support of both our long-term and new limited partners and are thrilled for our next evolution.”

Falfurrias Capital Partners is headquartered in Charlotte, North Carolina.

© 2021 Private Equity Professional | September 10, 2021

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