Newt Gingrich, the former Republican House Speaker, has joined private equity firm JAM Capital Partners to help raise a $100 million fund, the firm said.
His position will be strategic advisor and advisory board member at JAM, the firm's spokeswoman Regina Mabry told Private Equity International.
JAM, based in Georgia, seeks majority and minority investments in lower mid-market businesses in the southeastern US. It targets companies with revenues of between $5 million and $50 million, Mabry said.
Mabry told PEI that “government is intruding into the private sector more and more and we look forward to leveraging Gingrich's experience to help our portfolio companies operate in an increasingly regulated economy.” She added that this is the first time JAM is partnering with a politician.
The firm’s founder, John McCallum, had worked as a legislative aide for Gingrich between 1993 and 1996, according to McCallum’s LinkedIn profile.
McCallum founded JAM in 2010, after he worked in the investment management division of Goldman Sachs for four years. Earlier in his career, he was an executive director at The TAG Foundation for four years.
JAM’s first fund raised $40 million and has made six full exits.
According to the firm’s January 2012 filing with the US Securities and Exchange Commission, the first fund, JAM Capital, received its first commitment in April 2011 and had raised $225,000 from seven investors. It accepted a minimum commitment of $10,000, the document said.
JAM’s limited partners are entrepreneurial families in the Southeast looking to co-invest with other families, the firm said. It expects to start making acquisitions immediately and to close the fund by the end of this year, it said.