Brazos executives form middle market focused CenterOak Partners

Brazos Private Equity Partners decided earlier this year to not raise another fund and wind down. At the time, partner Michael Salim said some partners would be splitting off to pursue their own ventures, while continuing to manage out the portfolio.

[contextly_sidebar id=”AK5XNNiJzAsLcJbY15LUqDrxLnrilAVj”]Now comes word that co-founder and co-chief executive, Randall Fojtasek has formed a new firm, CenterOak Partners, to pursue control-oriented investments in middle market companies. Fojtasek will lead the firm along with Salim and other Brazos executives Lucas Cutler and Jason Sutherland.

CenterOak will make $20 million to $70 million equity investments in industrial growth, consumer and business services. The firm will target investments in the U.S. with a strong emphasis on the southwest and south. It’s not clear if the firm will seek to raise a fund with external investors.

Brazos, meanwhile, still had capital to be deployed in the $715 million Fund III, a 2008 vintage, as of March. Brazos at the time had not reduced or dropped fees on its funds despite the decision to wind down.

“Brazos has a long runway ahead of it. We have a portfolio to mine and harvest value. We’ll be together operating Brazos to the conclusion of portfolio company investment horizon(s),” Salim told peHUB at the time. “In time, partners may choose to extend their careers in different directions.”

It’s also not clear if the two other Brazos partners, Jeff Fronterhouse and Patrick McGee, are planning on forming their own firms. Brazos raised its first fund in 2000, collecting $250 million.

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