Cortec Group has held the final close of its eighth institutional private equity fund, Cortec Group Fund VIII LP (Fund VIII) with $3.2 billion of total capital commitments.
Cortec’s newest fund closed above its target of $2.5 billion and, with approval from its limited partners, above its $3.0 billion hard cap.
Limited partners in Fund VIII include the majority of the firm’s existing limited partners – which accounted for more than 75% of total limited partner commitments – along with new investors including United States and international financial institutions, pension plans, high net worth families and endowments.
Also, more than 30 current and former Cortec Group portfolio company senior executives committed more than $45 million to Fund VIII and no limited partner accounts for more than 5% of Fund VIII’s committed capital.
“We are grateful to our longstanding investors for their support of Fund VIII and are excited to welcome a distinguished group of new limited partner to Cortec,” said Co-President Dave Schnadig. “This fundraise is a significant milestone in Cortec’s history and will enable the firm to continue investing alongside talented entrepreneurs, families and management teams to help them evolve and build their companies.”
Managing Partners Michael Najjar, Jonathan Stein and Jeffrey Shannon will continue in their roles, while concurrent with Fund VIII’s initial closing the firm promoted several executives to more senior positions. Bill Tucker, Doug Kruep and Rob Whipple, each of whom has been with Cortec for between 8 and 20 years, were promoted to managing partner; and Aaron Hildebrand and Allie Klazkin were promoted to partner from managing director.
“We are proud to promote our next generation of leaders to their new roles and look forward to working closely with them in the development of Fund VIII’s portfolio companies,” said Co-President Jeff Lipsitz. “We now have ten senior leaders plus our founder, Scott Schafler, who have extensive experience in adding value to and growing entrepreneur-led, family-owned and other companies.”
Cortec invests from $100 million to $500 million in equity in United States and Canadian companies with EBITDA of $10 million to $50 million. Sectors of interest include consumer, healthcare, and specialty services and products. The firm was founded in 1984 and is headquartered in New York City.
With the close of Fund VIII, Cortec now has more than $6 billion in assets under management across its three active United States middle-market focused private equity funds.
“Our successful raising of Cortec VIII is a testament to Cortec’s talented and long-tenured leadership team, differentiated and difficult-to-replicate business model and consistently strong returns over the past 25 years,” concluded Mr. Schnadig.
Cortec was assisted in the placement of a portion of Fund VIII by Connaught, and Kirkland & Ellis provided legal services.
© 2024 Private Equity Professional | March 6, 2024
