Firms & Funds

Trilantic preps final close by end of Q2

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private equity, mergers, M&A, Ares Capital, business development companies, Congress, legislation, leverage, New York City Pensions, pension fund
New York City skyline, as seen here on Nov. 2, 2016. REUTERS/Lucas Jackson.
  • Trilantic targeting $2.2 bln with $2.75 bln cap
  • Pennsylvania PSERS commits up to $150 mln to fund
  • Fund V netting a 16.3 pct IRR

Trilantic Capital Partners is preparing to hold a final close for its latest North American private equity fund, documents from Pennsylvania Public School Employees’ Retirement System said.

Trilantic Capital Partners VI (North America), targeting $2.25 billion with a $2.75 billion hard cap, plans a final close before the end of Q2, a Pennsylvania staff memo showed. Fund VI had raised more than $1.5 billion as of early March, according to SEC filings.

Pennsylvania PSERS committed up to $150 million to Trilantic on May 24.

Evercore and Magenta Capital Services were placement agents for Fund VI, though neither was involved with sourcing Pennsylvania’s commitment. The GP group’s commitment will represent at least 2 percent of the fund’s investable capital.

Trilantic Capital Partners will use Fund VI to invest in North American companies in business services, energy and consumer, Pennsylvania documents said.

Trilantic’s typical portfolio companies are valued between $100 million and $1 billion when they’re acquired, with the firm investing $50 million to $200 million of equity per deal.

Fund VI has a relatively flexible investment mandate that enables the firm to invest in both traditional leveraged buyouts, giving Trilantic complete control of a business, as well as minority investments using preferred securities and debt, which the firm refers to as “structured preferred investments.”

“These types of structured preferred investments, coupled with appropriate governance and alignment, can deliver compelling private equity-type returns while providing downside protection and represents a key strategic differentiator in a competitive market,” Pennsylvania’s investment staff wrote in a memo.

The firm’s previous North American fund, which closed on $2.2 billion in 2013, was netting a 16.3 percent internal rate of return as of Sept. 30.

Trilantic’s North American team is led by Charles Ayres and E. Daniel James.

The firm also has a European investment arm operating independently of the North American team, led by Vittorio Pignatti-Morano, Javier Bañón and Joe Cohen.

Trilantic’s North American team has offices in New York and Austin. Its European team operates out of offices in London, Guernsey and Luxembourg.

Trilantic declined comment.

Action Item: For more on Trilantic, visit www.trilanticnorthamerica.com