Quad hits $200m hard-cap for Fund IV

The lower mid-market education investor has held a final close for its most recent fund that will invest in privately owned schools and education-related businesses.

New York-based Quad Partners has closed its fourth fund on its $200 million hard-cap after less than 12 months in market.

The firm focuses exclusively on the education industry, investing between $10 million and $25 million in small and mid-sized privately owned education companies in the US. Target businesses include K-12 schools, post-secondary schools, early education and childcare companies, educational consumer products and services and tutoring and after-school programs.

“There are not many [firms] that are focused just on education and as a result I think a lot of limited partners view this as great diversification for them,” Quad founder and managing partner Lincoln Frank told Private Equity International. “It probably doesn’t exist to a great extent elsewhere in their portfolio.”

The firm has 10 active investments in its current portfolio and two school investments under letter of intent from Fund IV, Frank added. Quad’s previous fund collected approximately $100 million in 2008, according to placement agent Probitas Partners.

Kramer Levin Naftalis & Frankel LLP acted as counsel to the firm. Quad did not use a placement agent for US investors but retained an agent for European LPs.

Founded in 2000, Quad’s 11-person investment team works from the firm’s New York headquarters and West Coast office located in the greater Los Angeles area.

Prior to founding Quad, Frank was the chief operating officer of JP Morgan Capital Corporation. He was previously an investment banker with Goldman Sachs and a lawyer with Skadden Arps.

Quad manages more than $400 million of equity capital from US and international limited partners.