O2 Investment Partners has closed its latest fund, O2 Investment Partners Fund IV LP (Fund IV), with an oversubscribed $445 million in capital.
O2’s new fund received strong support from both new and current institutional investors. “We are grateful for the trust that our longstanding and new investors place in our team and strategy, especially in light of broader macroeconomic uncertainties and market conditions,” said Todd Fink, a managing partner at O2.
O2 makes control investments in companies with EBITDA of more than $5 million located anywhere in the United States and Canada but with a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $15 million to $50 million. Industries of interest include B2B services, technology, and select industrial companies.
Fund IV is already invested in three platforms. In February 2022, O2 acquired Berlin Rosen, a New York City-headquartered provider of strategic communications, public relations, consulting and digital advertising services to clients in the hospitality, travel, philanthropy, labor, real estate, and consumer technology sectors.
O2 closed its second Fund IV acquisition in January 2023 with the purchase of 4M Building Solutions, a St. Louis-headquartered provider of commercial cleaning, janitorial, and housekeeping services in 15 states across the Midwest, Northeast, and Southeast. O2 closed its third platform acquisition last week and will announce the transaction shortly.
“Our approach to ‘honoring the entrepreneur’ is well-positioned as we guide growth-oriented companies through a rapidly shifting market environment,” said Luke Plumpton, a managing partner at O2.
Metric Point Capital was an advisor and placement agent to O2 on this capital raise, and Kirkland & Ellis provided legal services. O2’s earlier fund, O2 Investment Partners Fund III LP, closed in January 2021 with $270 million in capital. Like Fund IV, both Metric and Kirkland assisted O2 in raising Fund III.
“We are once again pleased to have assisted O2 in achieving its fundraising goals as the firm welcomed a diverse group of investors to Fund IV,” said Kevin Imhoff, a partner at Metric Point.
“The Metric Point team again provided us with outstanding advice and tailored support that allowed us to navigate a challenging fundraising environment while maintaining our focus on investing,” said Messrs. Fink and Plumpton in a released statement. “We appreciate their longstanding partnership and look forward to working together in the future.”
O2 was founded in 2010 and is headquartered in the Detroit suburb of Bloomfield Hills, Michigan.
© 2023 Private Equity Professional | April 21, 2023
