Ex-Gores executive Fredston brings debut fund to market

  • Firm targeting at least $150 mln
  • Has made two platform investments so far
  • One of several Gores spinouts

Sole Source Capital, formed by ex-Gores Group executive David Fredston, is in the market with its debut fund targeting at least $150 million, according to an LP who has heard the fund pitch.

Sole Source is one of several firms that have emerged from the Gores franchise over the past few years. Gores itself decided last year to forgo raising a new fund and instead proceed on a deal-by-deal basis.

Fredston formed Sole Source in 2016 to target investments in the industrial, materials and energy sectors.

It’s not clear when fundraising began. A spokeswoman for Sole Source declined to comment.

The firm has made two platform investments since formation, including a deal struck in July for a majority stake in Trade Supplies, which provides food-service disposable items, dry-grocery items and janitorial supplies.

Earlier this year, Sole Source acquired a majority stake in Premier Flow Control, which rents equipment for oil and gas extraction in the Permian basin.

Fredston worked at Gores Group from 2010 to 2016 leading deal origination. Previously, he led hedge fund Long Green Capital Management, according to his LinkedIn profile.

Other executives at Sole Source include Dewey Turner, partner and head of operations, who joined in 2017 after working at Clearlake Capital and Gores Group; Scott Sussman, partner and co-head of M&A, who joined in 2017 from Ivory Investment Management, Empyrean Capital Partners and SAC Capital Advisors; and Bradford Rossi, partner and co-head of M&A, who joined in 2017 from Kirkland & Ellis.

Sole Source is one of several firms that have emerged from Gores Group over the years. Former Gores executives Jon Gimbel and Anthony Guagliano launched Gallant Capital Group, which brought its debut fund to market earlier this year targeting $300 million, Buyouts previously reported.

Alec Gores committed to Gallant and has a minority stake in its management company, Buyouts previously reported. It’s not clear if Alec Gores is also committing to Sole Source. 

Fredston has a tighter connection to Gores. He is married to Alec Gores’s daughter Rochelle.

Ex-Gores executives Jordan Katz and Tim Meyer left in 2014 to form Angeles Equity Partners. Katz and Meyer co-led the industrial vertical at Gores.  

Action Item: Read Sole Source’s Form ADV here: https://bit.ly/2zAkGq4