Hispania Capital Partners has held a first close on over $105 million for its second fund, which is targeting between $150 million and $200 million. The Chicago-based firm focuses on lower-middle-market companies that provide goods and services to the Hispanic demographic in the U.S. and Puerto Rico.
Limited partners include Verizon’s Pension Fund, the Municipal Employees’ Annuity & Benefit Fund of Chicago, the Public School Teachers’ Pension & Retirement Fund of Chicago, CalPERS, Credit Suisse’s Customized Fund Investment Group, the Connecticut Retirement Plans & Trust Funds and the New York City Employee Retirement System.
Hispania Capital Partners, LLC (HCP) launched its second fund, Hispania Private Equity II, L.P. (Fund II), on October 15, 2008 and held a subsequent closing representing aggregate committed capital of over $105 million. HCP is targeting $150 million to $200 million for Fund II. Following the success of its predecessor fund, Fund II will make growth equity and buyout investments in strategically positioned lower-middle market companies predominantly engaged in providing goods and services to the rapidly growing Hispanic demographic in the U.S. and Puerto Rico. Fund II is designed to invest in companies with compelling value propositions, proven management teams, positive cash flow, and annual revenues in excess of $10 million. Fund II will invest up to approximately $20 million per platform investment.
Returning investors to Fund II include Verizon’s Pension Fund, the Municipal Employees’ Annuity & Benefit Fund of Chicago and the Public School Teachers’ Pension & Retirement Fund of Chicago. In addition, new fund of funds investors to Fund II include Centinela Capital Partners on behalf of CalPERS via Capital Link Fund II, Credit Suisse’s Customized Fund Investment Group, Fairview Capital Partners on behalf of the Connecticut Retirement Plans & Trust Funds and the New York City Employee Retirement System, and two fund-of-funds managed by Muller & Monroe Asset Management, LLC.
Carlos L. Signoret, co-founder and managing principal of HCP, commented: “The initial closings of our second fund mark an important milestone for HCP and we are grateful for the trust and confidence our investors have shown in us. Since 2003, HCP has solidified its position as a leading private equity firm committed to sound partnerships with lower-middle market growth companies, most of which are competitively positioned to benefit from the underlying demographic growth drivers of the U.S. Hispanic market. We are pleased with the investment performance of our Fund I investments, including two successful exits which have returned over 50% of invested capital to date.”
Victor Maruri, co-founder and managing principal of HCP, added: “In what is an adverse macroeconomic environment, our investment thesis, which targets the non-cyclical drivers of U.S. Hispanic business growth, and our investment strategy, which is not dependent on favorable credit markets, position HCP to provide attractive returns to our investors. HCP utilizes its financial and operational experience to support management and deliver measurable performance improvements in our portfolio companies, while simultaneously contributing to the economic vitality of our communities. The first close of Fund II validates our unique investment philosophy and confirms our ability to successfully invest according to this thesis. We look forward to successfully deploying the capital raised thus far and holding a final close of Fund II in 2009.”
Hispania Capital Partners, LLC is a Chicago-based private equity firm with over $200 million of capital under management. HCP focuses on growth equity investments in strategically positioned lower-middle market companies that are predominantly targeting the rapidly growing U.S. Hispanic market. HCP’s target industries include business services, consumer & retail, financial services, food & restaurants, healthcare services, manufacturing, and media. Since 2003, HCP has invested in seven platform companies, ten add-on acquisitions and has successfully realized two platform investments. www.hispaniapartners.com