Citi vets complete $3.1bn fundraise(3)

One of the most longstanding teams of private equity investors in the market, Citigroup Venture Capital, has raised the largest spin-out fund yet as Court Square Capital Partners.

New York-based Court Square Capital Partners has reached a final close on its debut fund as an independent entity, rounding up a total of $3.13 billion (€2.27 billion) in commitments.

The firm, formerly known as Citigroup Venture Capital, was a longtime division of Citi. The Court Square team members spun out of the bank last year.

Citigroup Venture Capital (formerly called Citicorp Venture Capital) was founded 30 years ago by William Comfort. Over the years the press-shy firm has quietly been among the most influential players in the market. It has also served as a training ground for many private equity leaders.

Court Square is led by David Thomas, Michael Delaney and Joseph Silvestri. Comfort will remain on the firm’s investment committee, but has for several years not been involved in the day-to-day management of the firm.

Court Square investment professionals committed a total of $207 million to the new fund. The vehicle was placed by UBS and fundraising was overseen by John Kim, a Court Square partner in charge of investor relations. The fund drew significant support from high net worth investors, as well as institutional investors.

The fund is thought to be the largest yet raised by a team of GPs to spin out of a larger institution. Another significant spin-out fundraising in the market is CCMP Capital, the team of former JPMorgan Partners private equity professionals.

Following Court Square’s spin-out, a Citi division called Citigroup Private Equity raised $3.3 billion in direct investment capital to be co-invested alongside external private equity firms. Citi did not commit capital to Court Square.

Court Square will focus on middle-market buyouts. Recently the firm completed the acquisition of CompuCom Systems from private equity firm Platinum Equity in a deal valued at $628 million.