LPs waive Excellere’s Fund II key-man provision after passing of co-founder

  • LPs waive key-man provisions triggered in Fund II
  • Fund II, a $465 mln fund, so far has produced 48 pct IRR
  • Co-Founder Robert Martin passed away in September

Limited partners in Excellere Partners’ second fund waived a key-man provision that was triggered by the recent death of Co-Founder Robert Martin, co-founder David Kessenich said.

Kessenich, who is managing partner, described Excellere’s future as more or less “business as usual” after Martin’s passing. No changes are expected from either a leadership or strategy perspective, he said.

Partners Patrick O’Keefe and Ryan Glaws have both been with Excellere since its inception in 2006, while Partner Brad Cornell joined nearly seven years ago. Partner Ryan Heckman left the firm around 2014.

Martin, 69, died Sept. 12 after a battle with cancer, the firm said in a memoriam. The firm earlier announced Martin’s death in an update to its Form ADV, Buyouts reported.

Martin’s death did not trigger a key-man provision in Fund III, which in August struck its first platform deal through an investment in life-sciences company Biocare Medical.

Fund III, which collected $625 million including a $30 million GP commitment, has a premium carry of 25 percent, Kessenich said.

Fund II has fully realized seven of its 11 portfolio companies to date, so far generating a gross IRR of 48 percent and DPI (distributions to paid in) of 1.23x, Kessenich said.

Excellere’s second fund closed on $465 million in late 2010. Fund I closed on $265 million in 2007.

Excellere has had six liquidity events in the past six weeks, Kessenich said. The PE shop most recently exited TrialCard, which provides pharmaceutical marketing services, through a sale to Odyssey Investment Partners.

The lower-middle-market firm invests in companies across the healthcare, business services, energy products and services and industrial sectors.

Action Item: Excellere’s portfolio: www.excellerepartners.com/portfolio/index.php

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