Prospect Partners, the Chicago-based private equity firm has announced the closing of its second fund, Prospect Partners Fund II on $165 million (€136 million). The fund succeeds Prospect Partners Fund I, which closed in 1998 on $105 million.
The fund received commitments from investors including Goldman Sachs, General Motors Investment Corporation, JP Morgan Fleming Asset Management, the University of Notre Dame, Wilshire Associates, Private Advisors and the Northern Trust Corporation.
Commenting on the close, co-founder of Prospect Partners Richard Tuttle said: “”We are grateful for the terrific support from such a high-quality group of investors. We believe that the market environment continues to be quite favourable for identifying and investing in the small niche leaders that have been our historical focus.”
Fund II will focus on management-led acquisitions of lower middle market companies with niche strategies within the US. The fund will target leveraged buyouts and recapitalisations of companies with revenues between $10 and $30 million.
Prospect Partners was set up in 1997 by Tuttle, William Glastris Jr and Louis Kener. The firm now employs 10 professionals operating out of a single office in Chicago.
The new fund will target opportunities as diverse as those pursued by Prospect Partners Fund I, which has invested in 38 companies including a marine accessories producer and a maker of bingo markers.