Odyssey closes Fund V on $2bn hard-cap

The mid-market firm surpassed its $1.75bn target after less than six months in market.

Odyssey Investment Partners has closed its Fund V on its $2 billion hard-cap, surpassing its $1.75 billion target, according to a statement.

Fund V launched in September 2013 and received commitments from “substantially all” limited partners from the firm’s $1.5 billion Fund IV that closed in 2009, the statement said. LPs in Fund V include the Montana Board of Investments, the Alaska Permanent Fund and the San Francisco Employees’ Retirement System, according to Private Equity International’s Research and Analytics division. The firm has yet to deploy any capital from Fund V. 

Odyssey contributed up to 3 percent of Fund V’s total capital in the form of a general partner commitment, according to a memo from Portfolio Advisors to the Pennsylvania Public School Employees’ Retirement System. 

“We and our partners are pleased by the significant demand for Fund V and by the speed with which we were able to complete the fundraising process,” Odyssey co-presidents Brian Kwait and Bill Hopkins said in the statement.

Odyssey’s prior fund, Fund IV, was generating a net internal rate of return of 23 percent and a net return multiple of 1.6 times as of 30 June, according to Pennsylvania documents. 

Odyssey invests in mid-market industrial manufacturing and business services companies with earnings before interest, taxes, depreciation and amortisation of between $20 million and $100 million. The firm focuses on sub-sectors including aerospace, equipment rental, energy, packaging and safety products.

Odyssey is based in New York and Los Angeles and is led by founders Kwait, Hopkins and chairman Stephen Berger. Prior to establishing Odyssey in 1997, Kwait worked at Bear Stearns & Company. Hopkins and Berger previously worked at GE Capital.

Odyssey has about $4 billion of assets under management.