Stellex holds $440m first close on debut fund – Exclusive

The Carlyle spinout firm is more than halfway to its $750m target for its first fund that made its first acquisition in November.

Stellex Capital Partners, a spinout from The Carlyle Group, has held a first close of its debut fund on $440 million, a source close to the matter told Private Equity International.

Stellex Capital Partners launched in mid-2015 targeting $750 million, according to the firm’s 2 June 2015 filing with the US Securities and Exchange Commission. The fund has a hard-cap of $1 billion, according to PEI’s Research & Analytics division.

Stellex is led by managing partners Ray Whiteman and Michael Stewart, who were both partners at Carlyle, as well as managing directors and co-heads of Carlyle Strategic Partners.

The firm hired investment bank Sixpoint Partners as its global exclusive agent at the fund’s inception, the source said.

Investors in the fund include the Houston Firefighters’ Relief and Retirement Fund, which committed $30 million, and the Teacher Retirement System of Texas, which committed $50 million, according to PEI Research.

The firm focuses on mid-market companies in distress and special situation opportunities in the US and Europe, according to its website. It invests up to $100 million in corporate buyouts, new debt and equity capital issuance, and the purchase of existing debt and equity. The companies it seeks typically generate revenues of a maximum of $2 billion and are in the industrial and service sectors, the website said.

Stellex, headquartered in New York with an office in London, completed its first acquisition in November, when it bought Marine Hydraulics International, a marine repair and conversion contractor.

The firm was not available to comment.

Kirkland & Ellis was the legal advisor to the fund, the source said.