TowerBrook reaches $3.5bn hard cap(2)

The transatlantic firm has completed a final close on its fourth fund, $500m over its original target.

TowerBrook Capital Partners has held a final close on its latest vehicle, the fourth of its series of flagship funds, at its hard cap of $3.5 billion. 

The fund, which had an original target of $3 billion, will continue to pursue control investments in large and mid-market companies through buyout and distressed transactions. Although TowerBrook doesn’t focus on any specific sector, previous investments have included acquisitions in the healthcare, consumer, retail, media, and financial industries. 

The London and New-York based firm had managed to garner commitments from a wide array of LPs over the course of last year. Disclosed investors have included The Massachusetts Pension Reserves Investment Management Board, which earmarked $100 million for the fund last December, as well as Washington State Investment Board, which committed $300 million in November. 

The fund close rounds up an active couple of years for the firm. Notable realisations have included Jimmy Choo, a 3x exit to trade player Labelux. The transaction was valued in excess of $500 million, a source close to the matter said at the time. 

Recent investments have included last November’s acquisition of Vistage International, a CEO and executive advisory company, as well as a majority stake in Volution Group, a ventilation business, in January 2012. These followed the acquisition of CapQuest, a consumer debt purchaser and provider, in August 2011. 

The firm will commit between $75 million to $250 million in equity per deal to companies with enterprise values between $300 million to $1 billion. Its previous flagship fund have performed well, generating a 1.3x investment multiple and 19.4 percent net internal rate of return as of 30 June, according to California Public Employees’ Retirement System documents.

TowerBrook was founded by its chief executive officers, Neal Moszkowski and Ramez Sousou. It was established as a successor of Soros Private Equity, part of Soros Fund Management, in 2005.

The firm has approximately $5 billion of assets under management.