ABRY in market with debut small-market strategy

  • ABRY Heritage Partners raises $525 mln
  • To invest in smaller deals than flagship fund
  • Run by overall investment team

ABRY Partners is joining a host of other funds launching separate strategies to invest in the smaller side of the market.

The Boston firm raised at least $217 million on a $525 million target for its first small-market fund targeting investments under $50 million, according to a limited partner with knowledge of the fund.

ABRY Heritage Partners is being offered only to existing limited partners, the LP said. The fund held a first close; it’s unclear when it might finish fundraising. Chris Tofalli, a spokesman for ABRY, did not return requests for comment.

The fund is led by Managing Partner Erik Brooks, the LP said. Along with Brooks, senior executives listed on Heritage Partners’ Form D filing from May 27 are Jay Grossman and Peggy Koenig, the firm’s co-CEOs.

The Form D lists the $525 million target but does not indicate how much the fund raised. ABRY has not made public information about the Heritage strategy.

The Heritage fund will invest in deals under $50 million in the same sectors ABRY’s flagship funds target, including media and communications, information services and business services, the LP said.

“They historically have been passing on these smaller transactions,” the LP said.

Heritage is one of several strategies at ABRY. Along with the flagship funds and Heritage, ABRY has what it calls Senior Equity funds and Senior Debt funds. Senior Equity Fund IV closed on $950 million in 2012, and Advanced Securities Fund III closed on $1.5 billion in 2014, ABRY’s website says.

ABRY joins several other firms in launching new strategies including smaller investments or non-control, growth investments. Vista Equity Partners has been talking with certain LPs about launching a micro-cap fund that could target $400 million. This fund would replace Vista’s Foundation Fund series, which has outgrown the smallest side of the market.

Trivest Partners recently closed its debut growth equity fund on $225 million, more than twice its $100 million target. Clearlake Capital was seeking about $500 million for its first non-control, structured debt and equity fund last year. It’s not clear whether that fund closed.

Also last year, Harvest Partners was raising its debut non-control fund, Harvest Partners Structured Capital Fund, targeting $400 million. That fund collected about $244 million as of January. It’s unclear whether the fund is still in market.

Action Item: About ABRY: http://www.abry.com/AboutUs/OurFunds.aspx

David Ortiz of the Boston Red Sox stands in the on-deck circle in Game 4 of the American League Division Series against the Oakland Athletics, at Fenway Park in Boston on October 5, 2003. Photo courtesy Reuters/Brian Snyder