Clarion Capital Partners, an investor in lower-middle market companies, has held an above target and above soft cap closing of its fourth fund, Clarion Investors IV LP, with $677 million of total capital commitments. The new fund’s original target was $600 million, and its soft cap was $650 million.
New York City-based Clarion Capital makes control and minority equity investments in businesses with $7.5 million to $30 million of EBITDA. The firm’s private equity strategy was launched in 2000 and its structured credit strategy – which focuses on collateralized loan obligation (CLO) equity and mezzanine investments – was launched in 2018.
“We deeply appreciate the support of existing and new limited partners, all of whom are placing their trust in Clarion’s culture and best-in-class team,” said Marc Utay, Clarion’s founder and managing partner. “We’re proud to have exceeded our initial target, and our developing leadership team looks forward to delivering more great results in the coming years.”
Fund IV is Clarion’s second oversubscribed fund in a row and follows the November 2017 close of its $427 million third fund, Clarion Investors III LP. Clarion recently completed its final platform investment for this fund with an investment in Narrative Strategies, a Washington DC-based provider of integrated public affairs and corporate reputation services, in February 2024.
In tandem with the final close of Fund IV, Clarion has announced the promotion of David Ragins to president of private equity. Marc Utay, Clarion’s founder, will continue to serve as managing partner and will provide the firm’s strategic vision and leadership. In addition to the private equity business, Clarion structured corporate credit unit will continue to be led by Robert Klein as its president and chief investment officer.
“Clarion has experienced tremendous growth since I joined, and I am thrilled to take on this new role at such a positive inflection point in our firm’s development,” said Mr. Ragins. “I appreciate the importance of continuing to drive the key pillars of our success—collaboration, engagement, creativity, and discipline—especially as we work to build on the success of our first three funds.”
“Our firm is excited to announce the promotion of David Ragins to president of private equity,” said Eric Kogan, a partner at Clarion. “David has spent nearly two decades at Clarion, has played a critical role in building our culture, and has led the development of our media, entertainment, and technology investing. He has built highly productive partnerships with growth companies and has been a terrific contributor to the success of our funds.”
Paul, Weiss, Rifkind, Wharton, & Garrison provided legal services on this fundraise.
© 2024 Private Equity Professional | April 10, 2024
