TowerBrook targeting $3bn for latest fund

TowerBrook Capital Partners is seeking $3bn for its fourth fund more than a year after generating a 3x return on its Jimmy Choo investment.

TowerBrook Capital Partners is targeting $3 billion on its latest vehicle, the fourth in its series of flagship funds. 

TowerBrook Investors IV will focus on build up and growth investments, as well as distressed for control. Although the fund does not have a specific sector focus, TowerBrook’s investment team has experience in the financial services, media, healthcare, telecommunications, chemical, industrial, retail and outsourcing industries, according to New Mexico State Investment Council meeting materials. 

The firm will invest between $50 million and $300 million in equity per deal with a flexible approach to capital structure, according to presentation materials. 

TowerBrook declined to comment on this story. 

New Mexico is considering a $75 million commitment to the fund at its Tuesday meeting, according to a State Investment Council spokesperson. 

The firm’s previous vehicles have performed well, ranking in the first or second quartile in the Thomson Venture Economics Global Buyout benchmark as of 31 March, according to an LP Capital Advisors report included in New Mexico’s meeting materials. 

California Public Employees’ Retirement System documents indicate the firm’s previous vehicle – a $2.8 billion 2007 vintage – was generating  21.5 percent net internal rate of return and 1.3x investment multiple as of 31 March. 

Last year, TowerBrook generated a 3x return on its investment after selling designer shoe company Jimmy Choo to Labelux. Labelux’s winning bid for the company exceeded £500 million, a source with knowledge told Private Equity International at the time.  

TowerBrook was founded by its chief executive officers, Neal Moszkowski and Ramez Sousou. The firm maintains offices in London, New York and San Francisco and has approximately $4.5 billion in assets under management.