Monitor Clipper closes $800m fund

The Cambridge, Massachusetts firm’s Fund II exceeds the previous $630m vehicle and is targeting middle market LBOs in the industrial sector.

Monitor Clipper Partners (MCP) announced the close of its second fund on $800 million (€661 million).


The fund held a final close back in February, a little more than a year after MCP began fundraising, and surpasses the firm’s inaugural $630 million raised in 1998.


Managing director Travis Metz said 2003 was a “terrible year” for fundraising, but MCP’s previous limited partner support, coupled with the firm’s tack record, consistent team and market strategy helped push the fund to its goal.


MCP was launched in 1997 as a joint venture between The Monitor Group, a strategy consulting firm, and The Clipper Group, a CSFB spinout that focused on buyout investing. Metz said this extensive network, which includes a close relationship with Monitor Consulting, provides MCP with a boost in terms of deal sourcing.


Fund II will make average investments of $50 million in companies with enterprise value of between $100 million and $500 million primarily in the industrial sector.


About half of the commitments came from new investors, mostly North American though Metz said a few European LPs also came aboard. The firm also diversified its investor base from the previous fund, which was dominated by financial institutions.


The 15-strong investment team at Monitor Clipper focuses on leveraged middle market buyouts and growth equity investments mainly in North America. Last August, MCP portfolio company Veridian, a network system security provider, was bought by General Dynamics in a $1.5 billion cash transaction. The firm saw a 3.2 times return on its original 1999 investment of $80 million.