Transom Capital Group has held a final close of Transom Capital Fund IV LP with $675 million in capital commitments. Fund IV closed above its target and initial hard cap and is more than double the size of the firm’s third fund.
Institutional investors in Fund IV include endowments and foundations, corporate and public pension plans, insurance companies, funds-of-funds, and family offices.
“The oversubscribed closing of Fund IV marks a significant milestone for Transom and we believe is reflective of our 16-year track record and dedication to our longstanding, consistent strategy of creating value through operational improvements in the middle market,” said Russ Roenick, a co-founder and managing partner at Transom Capital. “We are extremely grateful for the support from our longstanding existing and new limited partners globally.”
Transom makes control investments in North America-based companies that have revenue up to $500 million, EBITDA up to $100 million, and enterprise values up to $500 million. Sectors of interest include industrial, consumer, business services, and technology.
“Fund IV is off to a tremendous start with our team having already closed three platform investments, all of which we believe are positioned to perform strongly, and we have an expanding pipeline of promising future opportunities,” said Ken Firtel, a co-founder and managing partner at Transom.
Fund IV’s first platform was acquired in April 2023 when Transom acquired the Bose Professional division, a Massachusetts-based manufacturer of audio systems for commercial and professional applications, from Bose Corporation.
Fund IV’s second platform is Artivo Surfaces which Transom formed through the combination of Galleher, a California-headquartered top-20 distributor and manufacturer of flooring products that was acquired in December 2023, and Virginia Tile, a Michigan-headquartered specialty distributor of ceramic, porcelain, and natural stone tile, that was acquired in June 2024. As part of the Virginia Tile acquisition, Transom raised $79.5 million in co-investment capital from its limited partners to support the purchase of Virginia Tile.
The third investment made by Fund IV was the April 2024 acquisition of Ampure (formerly Webasto Charging Solutions), a California-headquartered provider of electric vehicle and industrial charging products and services for passenger vehicles, material handling equipment, and ground support equipment.
With the close of Fund IV, Transom has more than $1.5 billion of assets under management and is headquartered in El Segundo, California, near Los Angeles.
© 2024 Private Equity Professional | November 14, 2024
