The Gores Group said Wednesday that its fourth PE fund has raised $300 million. Gores Small Capitalization Partners L.P will target lower middle market businesses. Gores Capital Partners III L.P. will co-invest $100 million alongside the fund
The Gores Group, a leading Los Angeles-based investment firm, today announced the closing of its fourth private equity fund, Gores Small Capitalization Partners, L.P. The $300 million fund will target lower middle market businesses that can benefit from The Gores Group’s operationally-focused investment strategy.
“We believe there are tremendous opportunities available at the lower end of the market that can benefit from the same operationally-focused investment strategy that we have employed over our 25 year history,” said Alec Gores, Founder and Chairman of The Gores Group. “We appreciate the continued strong support of our existing investors and look forward to a long-term partnership with the new investors who have joined us in this fund.”
The new fund will be led by Managing Directors Ashley Abdo, Victor C. Otley, Catherine Scanlon and Michael Nold, and will pursue companies below the target size for Gores’ current flagship fund, Gores Capital Partners III, L.P. which closed on over $2 billion in capital commitments in January 2011. Additionally, Gores Capital Partners III, L.P. will co-invest $100 million alongside the fund.
The success and fast-pace of the Gores Small Cap fundraising is attributable to significant support from existing investors and new investors, which led to oversubscription. The target and hard cap of $300 million was self-imposed by The Gores Group, in order to focus on investment opportunities in the lower middle market.
Lazard acted as financial advisor for the fund and Weil, Gotshal & Manges served as fund counsel.
About The Gores Group LLC
The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. Headquartered in Los Angeles, the Gores Group maintains offices in Boulder, CO, and London. For more information, please visit www.gores.com.