Altas Partners closed its Altas Partners Holdings on its $1 billion hard-cap, according to the firm.
The fund was oversubscribed and fundraised for about one year, racing past its $600 million initial target, a source familiar with the matter told Private Equity International.
This fund breaks the typical structure of a private equity investment vehicle consisting of a five-year holding period and a 10-year lifecycle. According to reports, Altas has the choice to keep its ownership of portfolio companies for as many as 17 years, charges management fees only on the investment capital, rather than the whole fund, and puts a significant share of its own capital into each transaction.
With this structure, Altas joins some private equity giants that have launched longer-term funds. The Blackstone Group raised $670 million in the first quarter of the year for Blackstone Core Equity Partners, a long-term fund targeting $5 billion, as reported by PEI. As of February, The Carlyle Group had raised $3 billion for Carlyle Global Partners, which will invest in companies for up to twice as long as a traditional fund and has a lifespan of up to 20 years, according to PEI Research & Analytics.
Altas has invested in three companies on a deal-by-deal basis, supported by select institutional investors: optometry management services provider Capital Vision Services, medical school St. George’s University and road safety salt provider NSC Minerals.
According to the firm’s 23 October filing with the US Securities and Exchange Commission, there were 13 investors in the fund at the time. It had raised $356.4 million up to that point.
Altas was founded in 2012 by former Onex managing director Andrew Sheiner, who co-led the establishment of Onex Partners, the large-cap private equity platform of Onex, in 2001.
Park Hill Group served as the placement agent and was set to receive $7 million in sales commissions at the time of the SEC filing.
A spokeswoman was not available to comment on the fund structure.