Arizona-based investment bank Windstone Capital Partners has launched its debut private equity fund, Windstone Opportunity Fund, on $150 million (€123 million).
The new vehicle will invest primarily in small- and mid-cap public companies.
According to Windstone founder and senior managing director Norm Clarke, the fund will also invest make investments in private companies where it can retain control of the going-public process.
Private equity veteran Richard Freeman, formerly of Boston-based Century Capital Management, will operate the fund as managing general partner along with Clarke.
The fund plans to make investments of between $5 million and $15 million in companies operating in the technology sector – where Clarke has expertise – and the insurance and financial services sector, which is Freeman’s specialty. Clarke said he expects about half the investments to be in the Southwest US. Windstone plans to make its first investment in September.
Clarke said the fund currently has five limited partners, consisting of family trusts and small institutions. Windstone Opportunity is structured as a pledge fund through the investment bank, which Clarke added will allow the fund access to the bank’s deal flow while simultaneously lining up co-investors for the fund.