LongWater Opportunities has held a first closing of its third fund, LWO Fund III LP (Fund III), with $53 million of capital. The firm’s new fund has a target of $100 million.
The first close of Fund III was supported by existing and new limited partners including individuals, family offices, and institutional investors. Like its earlier funds, capital provided by the professionals at LongWater will aggregate to be the fund’s largest investor.
LongWater was founded in 2009 by Jordan Bastable and Brooks Burgum and is headquartered in Dallas with an additional office in Fargo, North Dakota. Other members of the LongWater team include Principal Bern Ebersole, Vice President Murphey Henk, Senior Associate Griffin Peavey, Associate Trenton Shore, Director of Investor Relations Tim O’Keefe, and Executive Assistant Virginia Luchau.
“LongWater is fortunate to have attracted such a strong team that has worked together for many years to consistently produce outsized returns for our investors,” said Mr. Burgum. “We are appreciative of the support provided to us by our limited partners throughout the challenges brought about by the COVID-19 pandemic, and we are excited about the significant momentum that continues to build at LongWater.”
LongWater makes control equity investments in family-owned manufacturing and specialty distribution businesses with revenues from $10 million to $50 million and EBITDA from $2 million to $10 million. LongWater recently signed a letter of intent for its first Fund III portfolio company and is currently engaged in due diligence.
“We are excited to see investors validating our strategy and believe that reshoring will continue to proliferate in the United States. American workers are the most productive in the world and we are passionate about leveraging American ingenuity to build great American businesses,” said Mr. Bastable.
LongWater’s earlier fund, LWO Fund II LP, held a final, oversubscribed, and above target close in April 2016 with $50 million of capital. This fund has been invested in five platforms centered around family-owned, United States-based manufacturing businesses including Lewis Cabinet Specialties, a Utah-based automated custom cabinet manufacturer serving residential and commercial customers (October 2018); and Kalisher, a North Carolina-based commercial art production company (February 2018).
The remaining three platforms are San Benito Shutter Company, a California-based maker of custom hardwood shutters (April 2016); Standard Merchandising Co., a New Jersey-based maker and seller of branded and private label hosiery products (December 2015); and M3 Glass Technologies, a Texas-based fabricator of architectural glass (November 2015).
LongWater’s first fund, LWO Fund I LP, which followed the same strategy as its second and third funds, has been fully realized.
“I couldn’t be prouder of our team and what they have done to support and grow American manufacturing businesses. I look forward to our continued investment in this great country,” concluded Mr. Bastable.
© 2021 Private Equity Professional | September 30, 2021
