Firms & Funds

DLJ spinout CIP Capital in market with up to $500 mln sophomore fund

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CIP Capital, private equity, Scott Marden, Justin Lipton, Melissa Vlak, DLJ Merchant Banking
Photo of Scott Marden courtesy of CIP Capital
  • Fund II has held at least four closings
  • To charge 2 pct management fee
  • 80 pct offset on several fees

CIP Capital, a spinout from DLJ Merchant Banking, is in market, targeting up to $500 million for its sophomore fund, according to a source and a Form D filing with the SEC.

Update: Fund II is targeting $400 million with a $500 million hard cap.

CIP Capital raised at least $187.5 million as of March, the Form D shows. Fund II has had at least four closings but hadn’t yet activated as of June 2016, according to the firm’s Form ADV.

Fund II will charge a 2 percent management fee that will step down to 1.75 percent, the Form ADV said. CIP II includes an 80 percent offset for any transaction, monitoring, directors, investment banking, management-consulting and placement-agent fees, the Form ADV said. And 100 percent of any breakup fees will offset any broken-deal expenses, the filing said.

UBS is working as placement agent on the fundraising, the Form D said.

CIP Capital managed $517.9 million of discretionary capital and $150.2 million of co-investment assets on a non-discretionary basis as of June 1, 2016, the Form ADV shows.

The firm focuses on the lower middle market across business information and tech-enabled services sectors, with a focus on business services, marketing services and knowledge services, the Form ADV said.

CIP targets growth investments and buyouts involving companies with revenues of $20 million to more than $125 million, the website said.

CIP launched in 2011. Its principal owners are Scott Marden, Justin Lipton and Melissa Vlak, according to the Form ADV.

CIP Capital Fund I closed in 2015 on $230 million, below its $350 million target, Buyouts previously reported.

CIP completed an investment in September in CARCO Group, a provider of tech-enabled human-capital-management and risk-management services.

Update: This story was updated to indicate Fund II’s target is $400 million and hard cap is $500 million.

Action Item: CIP Capital’s Form ADV: https://adviserinfo.sec.gov/IAPD/Part2Brochures.aspx?ORG_PK=160700

Scott Marden, managing partner at CIP Capital. Photo courtesy of the firm.