US buyout house Huron Capital Partners has held a final close on its first non-control private equity fund.
The Detroit-based firm collected $142 million for the Huron Flex Equity Fund after seven months in market, according to a statement from placement agent Sixpoint Partners. The vehicle – which had a $100 million target – was understood to be nearing a close as long ago as January 2017.
Flex is the firm’s sixth fund, but the first to target 20 to 49 percent of ownership in companies with $10 million-$200 million in revenue. The vehicle has already completed two deals, acquiring stakes in North Carolina-based power cable distributor StayOnline and Texas-headquartered road safety manufacturer B&B Roadway Security Solutions in July 2017 and February 2018 respectively, according to Huron’s website.
“Our goal is to leverage our buy-and-build strategy in partnership with seasoned executives to improve and grow our business through strategic initiatives, operational improvements and add-on acquisitions throughout the lower middle market,” managing partner Brian Demkowicz said in the statement.
The non-control equity strategy will aim to capitalise on an area of the market that Huron felt it was missing out on partner Doug Sutton, who was appointed to help lead the strategy in 2016, told Private Equity International at the time. It will focus on companies that are not ready for a complete sale, either looking for an equity partner or to provide liquidity to shareholders.
Its latest flagship, Huron Fund V, closed at its $550 million hard-cap in January 2017 with commitments from investors including the Michigan Department of Treasury. The firm has raised over $1.8 billion since its launch in 1999.