Bregal Sagemount, a growth-focused firm that is part of Bregal Investments, has raised $960 million for Bregal Sagemount II, its first fund to accept outside capital.
The predecessor fund, Sagemount I, closed in 2012 on $500 million, which was all provided by Bregal Investments, a global private equity group which continues to be an anchor investor in Fund II.
The firm began fundraising around Labor Day and held a final close on its hard-cap on Monday above its $800 million target. As the firm was raising outside capital for the first time, it also had to register as a fund advisor with the Securities and Exchange Commission.
“Bregal has a long history of seeding large-scale fundraisings,” said Gene Yoon, managing partner at Bregal Sagemount. Bregal Investments is a subsidiary of COFRA Holding, which owns clothing retailer C&A, among other companies. Bregal Investments has several dedicated funds focused on strategies including investing in parts of the European and the North American mid-market, energy, and secondaries.
“We happened to be the first fund ready to hit the market,” he said, adding that it's likely several other Brugal funds will be opening to outside LPs as well.
The firm will target investments between $40 million and $50 million, up from an average of $35 million in Fund I. It will also increase the number of transactions and has expanded its team to 16 investment professionals from only five in 2012 to assist in the growth. The firm has already closed on six investments out of Fund II, representing nearly 20 percent of the capital. Yoon anticipates the fund will be 65-75 percent invested in about three years.
MVision was the placement agent.