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Topspin closes first buyout-dedicated fund on $132m

The Long Island, New York-based firm has held a final close eight years after the close of its $213m predecessor fund, which targeted both venture capital and buyouts.

Topspin Partners LBO has held a final close for its buyout fund on $132 million (€84 million), following a first close on $115 million in May 2007.

It is the successor to Topspin Partners, a $213 million fund closed in 2000 that targeted both venture capital and buyouts.

The eight-year pause between fund raises was due to “building up the track record and getting to a point where we felt ready”, Topspin managing director Leigh Randall told PEO.

The LBO fund was launched by the three buyout-focussed investment professionals from Topspin’s fully committed first fund. The venture-focussed investment professionals remain at Topspin where they continue to manage the firm’s venture investments.

The recently closed fund will make between 10 and 12 control investments in lower mid-market companies with enterprise values of between $15 million and $50 million, said Randall.

Targeted industries are consumer products, retail, restaurant, food and beverage, media and publishing, niche manufacturing and security due to the expertise of the group’s five investment professionals, said Randall.

Topspin invests through the continental US with a focus on Long Island. “We’re national in scope but we do like to invest on Long Island and plan to do a certain subset of our deals within the fund on Long Island,” said Randall. “But by no means do we restrict ourselves to this geography.”

Topspin began fundraising in early 2007 without the help of a placement agent. The lead investor in the fund as well as its predecessor is James Simons, founder of hedge fund Renaissance Technologies. The limited partner base is made up entirely of family offices and wealthy individuals.

The fund has made one investment to date in Brooklyn, New York-based art supplies retailer Utrecht Manufacturing. The company was acquired in partnership with Boston-based boutique merchant bank Madison Parker Capital from Greenwich, Connecticut-based private equity firm Brynwood Partners.