Firms & Funds

Aurora Capital set to close Fund V on more than $1 bln

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Los Angeles City Employees’ Retirement System, Bain Capital, private equity, pension fund
The skyline of downtown Los Angeles through a layer of smog is seen in the distance from a rooftop in Hollywood, California, May 31, 2006. U.S. environmental regulators proposed on January 7, 2010 stronger standards on lung and heart disease-causing smog that could cost industry up to $90 billion to implement. REUTERS/Fred Prouser/Files (UNITED STATES - Tags: ENVIRONMENT BUSINESS) - RTR28N0R
  • Aurora Fund V set to close soon
  • Firm to exceed $1 bln hard cap
  • Originally targeted $800 mln

Aurora Capital is set to close its fifth flagship fund on more than $1 billion within the next week or so, a person with knowledge of the firm told Buyouts.

Aurora, founded in 1991 by Gerald Parsky, assistant secretary of the treasury in the administration of President Gerald Ford, has been raising Fund V since last year. The original target on Fund V was $800 million with a $1 billion hard cap. The firm appears set to exceed the hard cap.

Park Hill Group was placement agent on the fundraising.

Aurora raised $900 million for Fund IV, which closed in 2012. Update: Fund IV generated an 18.78 percent net internal rate of return and a 1.72x net multiple as of June 30, 2016, according to analytics and intelligence platform Cobalt.

Los Angeles-based Aurora makes control investments in middle-market companies. The firm’s leadership includes Chairman Parsky and Partners John Mapes, Timothy Hart, Josh Klinefelter, Michael Marino and Mark Rosenbaum.

Earlier this month, Aurora Capital agreed to sell market-intelligence provider Market Track LLC to Vista Equity Partners.

Aurora Capital also manages the Aurora Resurgence special-situations funds. The firm is expected to launch its third Resurgence fund this year.

Aurora Resurgence Fund II acquired four portfolio companies from the first Resurgence fund to provide existing LPs with liquidity. LPs were offered the change to roll their interests into the second fund or sell out, according to a summary from consultant NEPC.

Update: This report has been updated to include more recent performance information on Aurora’s fourth fund.

Action Item: Check out Aurora’s Form ADV here: http://bit.ly/2q7ZKUE

The Los Angeles skyline is seen through smog from a rooftop in Hollywood on May 31, 2006. Photo courtesy Reuters/Fred Prouser