Roark closes second fund on $1bn

Closure of Roark Capital’s latest mid-market fund more than triples the US firm's assets under management.

Roark Capital Group has closed its second fund on $1 billion (€675 million). The Atlanta-based firm’s debut fund raised $413 million in March 2005.

Neal Aronson

“We are extremely pleased with the support received from our existing and new investors,” Roark managing partner Neal Aronson said in a statement. “The new fund will allow us to continue our strategy of investing in consumer and business service companies with outstanding management teams and strong growth prospects.”

Limited partners in Roark’s first fund included ATP Private Equity Partners, Commonfund Capital, Goldman Sachs Private Equtiy Group, Hamilton Lane, the Harvard and Princeton university endowments and Parish Capital Advisors. Lazard acted as the placement agent for Fund II, which held its first close in July 2007, Aronson told PEO.

Roark typically targets businesses with revenues in the $20 million to $1 billion range. The firm has recently been snapping up US franchise brands including Batteries Plus, Carvel, Cinnabon, FastSigns, McAlister's Deli, Moe's Southwest Grill, Money Mailer, Schlotzsky's and Seattle's Best Coffee International.

Roark has also acquired four direct marketing businesses and three financial services companies.

The fund close brings the firm’s assets under management to more than $1.5 billion.