Flea market owner Delos Capital closes second fund at ~$275 mln

Delos Capital, which has been building up a flea-market business via a series of acquisitions, closed its second fund close to its hard cap of $275 million, CFO Sanjay Sanghoee said.

The firm closed its debut at just north of $250 million in 2014. It did not use a placement agent for its second fund, although it may consider doing so in the future, a source said.

Fund II is more than half deployed, having started investing in early 2018, Sanghoee said.

“It was one of those things, while fundraising, a lot of good deals came in to the pipeline. We’re in a very interesting spot,” Sanghoee said. 

Delos’s LP base includes university endowments, large family offices, multi-institution offices and funds of funds.

Founded in 2013 by Matthew Constantino, Sanghoee and Andrew Schweibold (who later left), Delos Capital acquires companies generating $10 million to $40 million in Ebitda in industries including chemicals, packaging, industrials, manufacturing and consumer businesses as they relate to the first four sectors.

The firm, which lists nine employees on its website, plans to add an associate within the next six months, the source said.

In March, Delos-backed Sage Metals Private Ltd acquired Jayco Manufacturing, which provides precision custom metal-formed components.

Chris Witkowsky contributed to this report

Action Item: Check out Delos’s Form ADV here: https://bit.ly/2o6JiyS