L2 Point Closes Oversubscribed Inaugural Fund
Search

L2 Point Closes Oversubscribed Inaugural Fund

Combined with additional capital from co-investment vehicles the total capital raised was $460 million

L2 Point Management has announced the closing of its first structured equity fund, L2 Point Opportunities Fund I LP (“Fund I”), with $312 million in capital, exceeding its target. Combined with an additional $148 million raised through Fund I co-investment vehicles, the firm’s total capital raised reaches $460 million.

Limited partners in Fund I include a range of public pension plans, foundations, insurance companies, funds of funds, and high-net-worth individuals.

Headquartered in San Francisco, L2 Point is a woman- and Latina-owned firm, founded by Managing Partner and Chief Investment Officer Kerstin Dittmar. L2 Point’s investment approach targets structured equity opportunities within technology, technology-enabled consumer, healthcare, and media sectors. The firm aims for strong risk-adjusted returns by limiting downside risk through structural protections and contractual returns, while retaining upside potential through equity participation.

“Late-stage growth companies today are faced with a dilemma: sell equity in their business and incur permanent and costly dilution, or take on operationally restrictive debt,” said Ms. Dittmar. “At L2 Point, we seek to provide a better, alternative solution that enables companies to minimize dilution while continuing to invest in attractive growth opportunities. In the current market environment, where companies are staying private for longer and valuations are resetting, we believe an exceptional opportunity exists to serve as a partner of choice to management teams navigating the challenges and possibilities of today and tomorrow. We are grateful for the support of our limited partners, who see the value of our differentiated structured equity strategy.”

L2 Point’s current portfolio includes SimSpace, a Boston-based cybersecurity simulation provider offering military-grade cyber ranges that mimic real-world networks and systems for cybersecurity training, testing, and evaluation. SimSpace’s clients include Bank of America, U.S. Cyber Command, the FBI, and other government agencies and Fortune 2000 companies. L2 Point’s investment in SimSpace was made in December 2023.

Another portfolio company is Wasabi Technologies, a Boston-based provider of secure and affordable cloud storage solutions, in which L2 Point invested in September 2022. The firm has also invested in Fabletics, a digital-first activewear brand, and Revolution Foods, a provider of prepared meals for students, families, and communities.

PJT Park Hill served as the placement agent for L2 Point on this fundraise, and Proskauer Rose provided legal services.

© 2024 Private Equity Professional | October 29, 2024

To search in site, type your keyword and hit enter