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Accretive Exit Closes Debut Fund

Accretive Exit Capital Partners has closed its first fund with $125 million in capital commitments. The Boston and West Palm Beach, Fla.-based firm acquires portfolio company stakes from mid-market buyout funds. 


Accretive Exit Capital Partners, a Boston and West Palm Beach, FL based private equity firm, announces the final closing of their first fund, Accretive Exit Capital Partners, L.P. (“AECP I”) with commitments of $125 million. With a fund raising period of less than 45 days the General Partners of Accretive succeeded in establishing their first fund, which marks the largest first time fund in the secondary private equity space. “The enormous level of interest from a variety of institutional investors in the Accretive fund shows that the level of appetite for quality mid-market buyout assets in the secondary market is still very high”, explains Drew Reilly, a founding partner of Accretive Exit Capital.

Accretive's premier fund, is unique in that it is focused solely on purchasing high quality assets directly from blue chip mid-market buyout funds. This strategy is known as Secondary Direct investing and to date has typically targeted the tail end of a funds life cycle or portfolio assets that are out of focus among venture capital and, to a lesser extent, buyout funds. Accretive applies a very timely strategy in that its fund provides significant liquidity and realization in a very illiquid market, “we only seek to purchase high quality growth assets that are under levered [less than 2.5X debt to EBITDA] and growing earnings at a double digit rate, to date these assets had plenty of options for liquidity, today we're the most attractive option” added Reilly.

The Accretive Exit Capital Partners, LP fund follows a strict and disciplined investment strategy and targets a very diversified pool of later-stage growth companies among vintage 1999 through 2003 funds that have exceptional opportunities for short term attractive exits.

Accretive's sole focus will be in the area of secondary direct investments and has no plans to make direct investments into private companies. The General Partners expect that the AECP I portfolio will include more than 5 investments in the very near term and is convinced that the quality of the “planned to be acquired” assets will give Accretive the opportunity to achieve strong returns for its investor's as well as show other high quality buyout funds that there is liquidity in this market for high quality assets.

“We are currently facing a very favorable market environment for buyers with multitudes of acquisition opportunities”, adds Edwin Wang, a Founding Partner at Accretive Exit Capital, thus, Accretive expects to expand its capital under management significantly within the next two years

For more information about Accretive Exit Capital contact Ted Tedeschi at 617-217-2771 or