Prospect Partners has held an oversubscribed, hard cap and final close of Prospect Partners Fund V LP with $225 million of capital. Fundraising for the new fund began just nine months ago.
Limited partners in Fund V include existing and new investors, including endowments and foundations, family offices, wealth managers, and funds of funds across the United States.
“We are delighted to announce the close of Fund V at its hard cap and we’re deeply grateful for the overwhelming support of our investors, both existing and new,” said Erik Maurer, a partner at Prospect Partners. “Utilizing our disciplined approach, value creation expertise and strong reputation built over more than 25 years, we’ll continue to partner with entrepreneurial, high-potential businesses to help them achieve new levels of success.”
Fund V’s first platform investment closed in March 2024 with the formation of Extera Building Solutions and the simultaneous acquisitions of Warren Roofing & Insulating, Cleveland Building Restoration, and Total Roofing Services. The management team of Warren Roofing joined with Prospect Partners on the formation of Extera Building Solutions.
Headquartered near Cleveland in Walton Hills, Ohio, Extera now provides exterior facility services—including roofing, masonry, metalwork, and glazing—to public, industrial, healthcare, higher education, and commercial customers.
“We are excited to launch Fund V with a great business like Extera,” said Brett Holcomb, a partner at Prospect Partners. “Extera has several hallmarks of a successful Prospect investment, including an industry-leading management team, an actionable value creation plan and a deep M&A pipeline we are aggressively pursuing.”
Prospect Partners engaged Monument Group as the placement agent for Fund V. “Congratulations to Prospect on their successful fundraise,” said Bart Molloy, a partner at Monument Group. “Fund V’s success reflects investors’ recognition of the strength of the Prospect team, their long-term commitment to the pre-lower-middle market and the brand they have cultivated over 25 years.”
“Monument Group was a fantastic partner,” said Brad O’Dell, a partner at Prospect. “Their thoughtful approach allowed us to not only hit our hard cap in a difficult fundraising environment, but to find the right investor base for the long-term.”
Prospect Partners makes control investments in United States-headquartered companies with $15 million to $100 million of revenue and $3 million to $10 million of EBITDA. Sectors of interest include specialty services, niche manufacturing, value-added distribution, food and consumer products. The Chicago-headquartered firm was founded in 1998 and has invested in more than 55 platform companies and completed more than 115 add-on acquisitions.
© 2024 Private Equity Professional | October 2, 2024
