Gryphon Investors, a San Francisco-based middle-market private equity firm, has raised $100 million for an annex fund to Gryphon Partners III, which closed in 2006 with $415 million. The move will help Gryphon delay its next fundraising drive until late 2008 or early 2009.
Gryphon Investors, a San Francisco-based private equity firm, today announced that it has raised $100 million through a rights offering with its limited partners. The Gryphon III Annex Fund will supplement the remaining uncommitted capital of Gryphon Partners III and be invested on a pari passu basis in all new Gryphon III investments. Gryphon III had a final closing of $415 million in 2006, which, combined with the $100 million Annex Fund, results in $515 million of committed capital from the partners of Gryphon III.
“We appreciate our existing LPs so quickly expanding our active capital base by 25% so we could maintain our momentum and defer beginning a full fundraising process for Gryphon IV until late 2008 or early 2009,” said David Andrews, President and Managing General Partner of Gryphon. “Gryphon finished 2007 strongly in terms of both exits and new investments, along with an attractive pipeline of pending new acquisitions expected to close in early 2008, all of which the Annex Fund allowed us to do without the distractions of raising a new fund.”
In the latter part of 2007, Gryphon had two exits, selling Nursefinders, Inc. at over a 40% IRR and Consolidated Fire Protection Holdings, Inc. at over a 60% IRR. Also in the second half of 2007, Gryphon completed two new platform investments through the acquisition of Sheplers, Inc., the world's leading western wear multi-channel retailer, and the recapitalization of LeadAmerica, a leading operator of leadership conferences and educational summer programs for academically oriented students in grades six through twelve. In addition, Gryphon entered 2008 with two new platform acquisitions under letters of intent and targeted to close during the first quarter of the year.
“Given that Gryphon III was going to be largely invested around the end of 2007, we would have needed to launch Gryphon IV fundraising soon were it not for the Annex Fund,” Andrews commented. “Now, we have over $200 million of uncommitted capital available for new investments in an M&A environment that is well-suited for Gryphon's value-based investment style.”
About Gryphon Investors
Based in San Francisco, Gryphon Investors focuses on leveraged acquisitions of, and growth investments in, middle-market companies in partnership with experienced management. Having managed more than $1 billion of discretionary equity capital, Gryphon has an extensive track record of investing $25 to $75 million of its own capital in companies with sales ranging from $25 to $250 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, professional resources and significant financial and operational experience.