Gridiron Capital has closed its fifth fund, Gridiron Capital Fund V LP, with $2.1 billion of capital. The new fund exceeded its target of $1.8 billion and is markedly higher than the firm’s earlier fund which closed in December 2020 with $1.35 billion of capital.
Gridiron V is the largest fund in the firm’s history and was supported by both returning and new investors including pension funds, insurance companies, family offices, endowments, and foundations located across the United States, Europe, Asia, and the Middle East.
“Following another successful fundraise, we cannot be more appreciative of our investors’ continued confidence and unwavering support. Despite a challenging fundraising environment, many of our existing limited partners chose to not only re-invest but also increase their commitments in Gridiron V,” said Tom Burger, a co-founder and a managing partner at Gridiron. “At Gridiron, we cultivate a team culture of respect, getting better every day, and ‘Winning Together.’ We strive to provide superior returns for our portfolio company partnerships, our investors, and most importantly, our investors’ underlying constituents, including retirees, teachers, hospitals, and students, among many others.”
Like its earlier funds, Gridiron V will make control equity investments in North America-based branded consumer, business-to-business and business-to-consumer services, and niche industrial businesses that have enterprise values between $150 million and $600 million and EBITDA from $10 million to $60+ million.
Gridiron’s new fund is already 40% deployed across 4 platforms – including 16 add-on investments – as follows: Legacy Service Partners, a Tampa-headquartered provider of residential heating, ventilation, and air-conditioning, plumbing, and electrical services (January 2023); Esquire Deposition Solutions, an Atlanta-headquartered provider of remote and in-person court reporting, video, and interpreting services for law firms, insurance companies, and corporate legal departments (January 2023); and Magneto & Diesel, a Houston-area headquartered distributor and remanufacturer of aftermarket parts for diesel engines (September 2022); Vistage Worldwide, a San Diego-headquartered provider of CEO coaching and peer advisory services to small and midsize businesses (July 2022).
“Our success is built upon outstanding people and leaders,” said Kevin Jackson, a managing partner at Gridiron. “We are grateful for the talented and dedicated team at Gridiron, and we are proud of the performance of our portfolio company partnerships. Gridiron has developed repeatable processes and enhanced internal capabilities to prepare our portfolio companies for accelerated growth while protecting against a diverse range of economic headwinds. We enter Fund V with a dynamic group of companies poised for growth and we’re excited to continue executing our investment strategy to create further value for our loyal limited partners.”
New Canaan, Connecticut-headquartered Gridiron was founded in 2005 and has invested in over 185 companies, including 36 platform companies.
“Gridiron’s investment in its team, operational capabilities, technology, and processes has served us well in our evolution as a firm,” concluded Mr. Jackson.
Ropes & Gray provided legal services to Gridiron on this fundraise.
© 2023 Private Equity Professional | October 24, 2023
