Karp Leaves Tailwind Capital as Firm Prepares to Raise Second Pool

Doug Karp, a Tailwind Capital managing partner, has left the firm as it looks to raise a second fund. It’s unclear why he departed.

“After nearly ten years with Tailwind, Doug Karp left the firm several months ago,” a spokeswoman said in a statement. “Doug was a valued partner and we are grateful for the significant contribution he made to our firm’s success. We wish Doug and his family all the best in the future.”

New York-based Tailwind spun off in 2006 from Thomas Weisel Partners, the San Francisco-based investment bank. Tailwind targets middle market companies in healthcare and business & communication services.

Karp, 57, left Tailwind in January, sources tell peHUB. He joined the firm in 2003 when it was called Thomas Weisel Partners. His departure comes as Tailwind prepares to fundraise for its second pool and his exit was a “natural time to make a change,” a person says. Karp is described in prior peHUB stories as “co-ceo” but that title apparently is no longer used by Tailwind.

Tailwind is looking to raise $800 million for its second fund and marketing was expected to start in first quarter, peHUB has reported. MVision is the placement agent for Tailwind’s Fund II. One placement source says Tailwind is officially out marketing for its second pool, while a different placement source says Tailwind is still “heavily premarketing.” A spokeswoman declined to comment on the fundraising.

Karp’s departure comes at a bad time for Tailwind and won’t help the firm in its attempt to raise a second fund, a third placement source says. The fundraising market is very crowded with firms such as Clayton Dubilier & Rice, Apollo Global and the Carlyle Group all marketing new funds. Karp also led several of the firm’s investments, including Aircast, Freedom Innovations, SDI Health, Trover Solutions and VersaPharm, a different person says. The firm does have three other managing partners–Lawrence Sorrel, James Hoch and Frank Sica–so the firm does have a deep bench, the person says.

With a goal of $800 million, Fund II is trying to raise roughly the same amount as Tailwind’s first pool. The private equity firm collected $775 million with its inaugural fund in 2008. Fund I has produced a net IRR of 9.2%, according to Sept. 30 data from CalPERS.

Karp couldn’t be reached for a comment.

Photo courtesy of Shutterstock

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2 Comments

  • Any thoughts on why Karp would leave Tailwind at such an auspicious time for the firm?

  • i took a quick look at some court filings out of curiosity. didn’t see see much but i did come across a (small) suit filed against the firm in november over breach of fiduciary duty. an investor named jim fares is asking for $75K from tailwind and galen partners.(karp, along with a long list of other individuals from both firms, is listed as a defendant.)

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