Apax Partners spinout LNK Partners hit its $400 million (€333 million) cap for its debut fund in just six months. The consumer- and retail-focused firm had originally been seeking $275 million for the vehicle, LNK Partners, LP.
According to firm co-founder David Landau, LNK could have raised a “substantially” larger fund, but in the end decided to hold tight at $400 million.
“Four hundred million gives us the flexibility to do both large and small transactions,” he told PEO. “Many of our limited partners have a significant appetite for co-investment, so we can still go after the larger deals, but we also wanted to be able to do smaller deals as well.”
The LNK team, based in White Plains, New York, is headed by Apax Partners veterans Landau and Henry Nasella, as well as Bruce Klatsky, the former chief executive and chairman of clothier Phillips-Van Heusen (PVH).
It’s this track record that LNK is hoping will separate the firm from others active in the consumer space. “Clearly, there’s a lot of money chasing this sector,” Landau said. “Because we’re insiders – 100 percent focused on this space – we can bring tangible support to the management teams we back. We believe that gives us an advantage.”
LNK expects to invest between $20 million and $100 million of equity per transaction. The firm will target growth capital investments, buyouts and recapitalisations.
Landau did not disclose any investors in the fund, only describing that the LP base is comprised of institutions, corporate pensions and universities. However, he did note that more than 60 industry executives made commitments to the vehicle, representing more than $30 million of the capital under management.
Credit Suisse served as placement agent for the fund, while Paul, Weiss, Rifkind, Wharton & Garrison provided legal counsel.