LJH Global Investments has teamed with former Circle Peak partner John Poerink to launch the hedge fund specialist’s first private equity affiliate, LJH Linley Capital.
Florida-based LJH Global, which provides investment advisory services for high-net-worth individuals throughout the US and Europe, has provided an undisclosed interim equity financing amount for Linley to make immediate investments in its pipeline.
“LJH has made private equity investments in the past, and saw an opportunity to work and develop a joint venture with myself to have a more formal structure for private equity investments,” Poerink, who left Circle Peak roughly a month ago to form Linley, told PEO.
New York-based Linley will focus on deals ranging from $50 million (€34 million) to $800 million in transaction value, targeting middle market companies throughout the US, Europe, Canada and Latin America with EBITDA between $10 million and $100 million. Linley will specialise in the consumer products, industrial and manufacturing sectors, according to the firm’s website.
LJH Global co-founder James Hedges has joined Poerink as a partner in the new firm. The pair began discussing the idea for a LJH-backed private equity unit headed by Poerink several months ago while collaborating on potential deals, Poerink said.
Asked if launching a firm with Linley’s focus in today’s difficult middle market deal environment would prove challenging, Poerink responded, “There are a lot of interesting opportunities there that we have access to through our relationships. So yes, times are definitely not what they were three years ago, but frankly this poses for us a very good opportunity and that’s why we felt it was a good time to launch our firm right now.”
Poerink also indicated that the firm would finance its transactions through LJH-sponsored equity for the foreseeable future, and had no immediate plans of raising a fund with third party investors. However, he said third party fund vehicles could be considered down the line.
At Circle Peak, Poerink specialised in buyouts of $400 million or more in enterprise value, including the joint Circle Peak and Golden Gate Capital acquisition of footwear maker Rocket Dog Brands.
Linley has assembled a roster of high-profile executives for its advisory board, including former Scotts Miracle-Gro chief executive Robert Bernstock and former Coca Cola Company chief operating officer Brian Dyson.