Q&A with Prophet Equity on Raising an Oversubscribed Debut Fund
Over the holidays, Dallas-based turnaround shop Prophet Equity held a final close on its debut fund with $250 million in commitments, after 17 months on the road. The effort was oversubscribed, in part, because Prophet stuck militantly to its hard cap figure. Since Prophet will continue to target the same size investments, the firm already has pledged not to increase the size of future funds, either. In addition to the $250 million in capital commitments, the firm’s GPs have committed $25 million to the effort, with the option to raise their commitments to $50 million. I spoke with the firm’s founder, Ross Gatlin, about raising a first-time fund in this market. Gatlin is an alum of Insight Equity, a Texas turnaround shop has also been raising a new fund.
