Falfurrias Management Partners (Falfurrias) has held an oversubscribed and hard cap close of Falfurrias Growth Partners I LP (FGP) with $400 million of capital commitments.
FGP was backed by both new and existing limited partners including pension plans, asset managers, insurance companies, endowments, foundations, family offices, and high net worth individuals. The general partner of FGP committed $45 million in capital to the new fund.
FGP is the firm’s first dedicated growth buyout fund and is in addition to Falfurrias’ fifth buyout fund, Falfurrias Capital Partners V LP, which closed in September 2021 with an oversubscribed $850 million of capital. Growth buyout strategies invest in companies that have a demonstrated track record of success but require capital and operational expertise to accelerate revenue and EBITDA growth. In contrast, Falfurrias buyout strategy invests in middle-market companies that have EBITDA from $5 million to $40 million.
FGP is led by Partners Cam Dyer and Michael Clifton and invests from $20 million to $50 million in growth-oriented, lower middle-market businesses in the software and business services sectors with a specific interest in financial technology, technology services, information services, marketing services, data and analytics, and vertical software (software designed for a specific industry or business sector).
“We are delighted to have recruited world class investors and operators to join our team to help launch and lead FGP,” said Ed McMahan, a managing partner of Falfurrias. “This new fund will allow us to pursue attractive investment opportunities that are identified through our Industry First process but where we previously did not have the investment expertise or fund strategy to pursue.”
Mr. Dyer is the chairman of FGP’s investment committee and has more than 25 years of experience investing in the technology sector, most recently as a partner and co-head of TMT investing at The Carlyle Group. Mr. Dyer began working with Falfurrias in 2021 as a co-investor and advisory board member at Crosslake Technologies, a Washington-based provider of technical due diligence services to private equity firms which Falfurrias acquired in January 2021. Mr. Clifton, who joined Falfurrias in September 2021, is also a member of FGP’s investment committee and he has more than 20 years of experience in technology investing including a decade at The Carlyle Group.
Also joining FGP’s investment committee is Amy Brandt, who joined Falfurrias as a partner in July 2023 from Serent Capital where she was an operating executive director. From 2017 to 2022, Ms. Brandt was the President and CEO of Docutech, an Arizona-based provider of digital mortgage document services. Docutech was sold by Serent to First American Financial, a title insurance provider, for $350 million in February 2020. A fourth member of the FGP team is Vice President Hugh McColl IV who joined Falfurrias as a senior associate in January 2022.
“Our team is excited to have joined FMP, which has a strong track record of generating attractive returns for its investors through its Industry First approach supported by deep operating resources resident in the firm,” said Mr. Dyer. “We believe these extensive resources will allow FGP to continue Falfurrias’ track record of successfully growing lower middle market companies in our target sectors.”
Charlotte, North Carolina-headquartered Falfurrias 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. With the closing of FGP, Falfurrias has now raised over $2.2 billion of capital since its founding.
© 2023 Private Equity Professional | December 13, 2023
