Sentinel closes oversubscribed fourth lower middle market buyout fund with $765 million
Sentinel to Continue Focus on Building Lower Middle Market Companies in Partnership with Management
NEW YORK, July 16, 2008 - Sentinel Capital Partners, a private equity firm that invests in promising, lower middle market companies, announced today the final closing of Sentinel Capital Partners IV, L.P. at $765 million. The fund, which initially targeted $600 million, was more than two times oversubscribed and closed within six months of its launch.
Sentinel will continue to focus on the same investment strategy it has successfully employed in previous funds—partnering with talented management teams to acquire businesses with $5–25 million of EBITDA and solid fundamentals in industries where the firm has significant experience and can bring valuable business insights. Sentinel invests in businesses in the consumer products, food and restaurants, franchising, manufacturing and service sectors. In addition to platform acquisitions, Fund IV will pursue transformational, like-size add-on acquisitions for its portfolio companies.
The placement agent for Fund IV was the Private Fund Group of Credit Suisse Securities (USA) Inc. Commenting on Sentinel's successful six-month fundraising in a challenging and uncertain market environment, John Robertshaw, Managing Director and Co-head of the Private Fund Group said, "Private equity firms like Sentinel are able to efficiently raise new funds for five key reasons. First, they have superior investment records, and in most cases, generate top-quartile performance. Second, the track record includes many realizations. Third, the investment team is stable and has been responsible for the firm's long-term track record. Fourth, the firm has had a consistent focus, which investors believe will not change going forward. And last, the firm receives very strong support from its existing investors."
"We are extremely pleased to have surpassed our expectations for Fund IV by such a wide margin and with the market's strong reception," said David S. Lobel, founder and managing partner of Sentinel. "We received very strong support from our existing limited partners and from a highly regarded group of new global investors. The fact that we completed the entire fundraising process in less than six months is a credit to the hard work and commitment of our team and to Credit Suisse, our placement agent."
"Sentinel's ability to navigate complex and relationship-intensive situations is greatly valued by corporate sellers, small business owners, and management teams alike, and we believe this puts Fund IV in a position to excel," said John F. McCormack, Sentinel's co-founder. "Small businesses outnumber large businesses 10 to 1, and as Baby-Boomer entrepreneurs continue to reach retirement age, we expect a strong, steady flow of very attractive deals in our strike zone for many years to come."
Sentinel's investors include some of the most sophisticated institutions in the United States, Canada, Europe, and Australia. Investors in Fund IV include college and university endowments, corporate pension plans, diversified financial institutions, foundations, insurance companies, investment advisors, state and government retirement systems, and Taft Hartley plans. Sentinel's previous fund, Sentinel Capital Partners III, L.P., closed in April 2005 with $319 million.