Sentinel Capital Partners has held the simultaneous final closings of Sentinel Capital Partners VII LP (Sentinel VII) at $4.3 billion and Sentinel Junior Capital II LP at $835 million giving the firm a total of $5.2 billion of new capital.
Limited partners in the two new funds include college and university endowments, foundations, state and government retirement systems, corporate pension plans, insurance companies, sovereign wealth funds, investment advisors, and Taft-Hartley plans based in the United States, Europe, Japan, China, Australia, and the Middle East.
Like its earlier funds, Sentinel VII will invest in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of mid-market companies with up to $65 million of EBITDA. Sectors of interest include aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrials. Sentinel’s junior capital fund makes both credit and equity investments including senior and junior debt, preferred equity, and other forms of structured capital.
“We are delighted to finalize another successful fundraise with strong endorsements of our strategy from existing investors and select new global limited partners,” said David Lobel, a co-founder and managing partner of Sentinel. “We are incredibly pleased with the support we have received from an outstanding group of limited partners during an extremely challenging period for investors. Strong investor demand resulted in Sentinel VII securing commitments above its hard cap.”
“Over the course of 27 years, Sentinel has established a consistent record of growing and improving midmarket businesses by tackling financial and operational complexity while embracing partnerships with management teams, an approach that has proven appealing to corporate and institutional sellers, business owners, and company executives,” said John McCormack, Sentinel’s co-founder. “As Sentinel matures, we continue to invest in our people and the processes that enhance our capabilities.”
Sentinel’s two earlier funds, Sentinel Capital Partners VI LP, closed with $2.15 billion of committed capital in 2018; and Sentinel Junior Capital I LP also closed in 2018 with $460 million of committed capital.
New York City-headquartered Sentinel has closed more than 80 platform investments and 300 add-ons since its founding in 1995.
The Private Fund Group of Credit Suisse Securities advised Sentinel on this fundraise and Kirkland & Ellis provided legal services.
© 2022 Private Equity Professional | December 13, 2022
