Panorama Point Partners, the growth private equity firm founded by Stephen George, is seeking $200 million for its second fund, a source said.
Marketing for Panorama Growth Partners LP began in mid-January, the source said. The pool will have an investment window of four years and an overall term of 10 years, that’s extendable to 12, the source said. Fund II will charge standard fees of “2 and 20” with a minimum $3 million investment, the source said.
A new feature of Fund II is that it will allow LPs, in conjunction with Panorama, to pick out a single investment that will remain a long-term hold, the source said. The investment can be held as business platform to make acquisitions, the source said.
In this way, Panorama will not face pressure to sell the company after four years but can retain it for longer than 10, the source said.
George launched Panorama in late 2013 after spending more than a decade as chief investment officer of the $5 billion Capricorn Investment Group. New York and Palo Alto, California-based Capricorn is the investment office of eBay’s founding president Jeff Skol. (George was also Capricorn’s co-founder and a former managing partner.)
George grew up outside of Omaha, in a small town called Columbus (the same place that Twitter co-founder Evan Williams hails from). George returned to Omaha to start Panorama. The Midwestern city helps the firm tap into “family owned businesses that are going through generational changes…We are the transition mechanism for the next generation and to more growth and expansion,” he said.
“Panorama looks under the radar for private equity opportunities that are driven by growth,” said George, who declined to comment on the fundraising.
The growth PE firm is also out marketing for its first fund, Panorama Point Partners LP. Fund I is an evergreen pool that has $100 million in commitments, the source said. Fund I charges a 1.5 percent management fee and 15 percent carried interest rate on a minimum $5 million commitment (with a 3 year investment period), the source said.
With Fund I, LPs can invest whenever the fund is open, the source said. There are no fees for co-investments up to the amount they’ve committed, the source said.
Panorama, in its bid to maintain a good relationship with LPs, is giving investors the flexibility to “rebalance” commitments during the first and second year of Fund I, the source said. LPs can boost, cut or cancel a future uncalled commitment, the source said. This option is given once a year, in September, for Fund I investors, the source said.
Fund I and II are seeking to raise a combined $300 million in total capital, the source said. Both funds will function “side by side” and will allocate deals on a pro rata basis, the source said. Both funds can take majority or minority positions. Panorama can also provide private debt up to 10 percent of total capital in the fund, the source said.
Both pools target small and mid market companies with EBITDA between $3 million to $20 million, according to marketing documents. A generalist investor, Panorama will target sectors including technology, healthcare and financial services. Fund I has already invested more than $30 million in the past 18 months. Deals include Eat Fit Go, Pensco Trust Company and Midwest Medical Transport.
Last month, Opus Bank agreed to buy Pensco Trust Company for $104 million. Panorama more than doubled its money with the sale, the source said.
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Photo courtesy of Panorma Point Partners