Twin Bridge hits $1bn for US mid-market funds

The Chicago-based firm, which manages two separate accounts on behalf of a single LP, is now diversifying its limited partner base.

Twin Bridge Capital Partners, which secured a $500 million (€341 million) commitment for its second separate account in late August, is looking for new limited partners to help the firm expand its capital under management.

The Chicago-based firm, which allocates capital to US mid-market buyout funds, now manages $1 billion that is broken into two, $500 million separate accounts. The money comes from one investor, an undisclosed Fortune 500 insurance company, according to Brian Gallagher, co-founder of Twin Bridge.

The firm said its goal is to manage up to $2 billion in capital, with investments of $50 million to $100 million from limited partners.

Twin Bridge sets up customised, separate accounts for large institutional investors. The firm’s investment strategy is also focused on equity co-investments.

Twin Bridge was founded in 2005 by Gallagher, previously a partner with private equity firm UIB Capital, and Debbie Ackerman, who was a senior partner with PPM America Capital Partners. The firm has invested in Jefferies Capital Partners IV, Carousel Capital Partners III, Sun Capital Partners V and Arlington Capital Partners II.

Twin Bridge co-investments include oil and gas exploration company Davis Petroleum, Gilchrist & Soames, a hotel toiletry supplier, auto insurance company Direct General and Virgo Publishing, a business-to-business publishing company.