New York-based private equity firm Monomoy Capital Partners said it has closed its second restructuring fund, Monomoy Capital Partners II L.P., with $400 million in commitments. The fund exceeded the firm’s initial $350 million target, and included investments from unnamed pension funds, fund-of-funds and endowments.
Monomoy Capital Partners, a private equity firm that makes control equity investments in underperforming companies in the lower middle market, is pleased to announce the final closing of its second restructuring fund, Monomoy Capital Partners II, L.P. (“Fund II”), with $400 million of Limited Partner commitments.
Monomoy’s Fund II exceeded the firm’s $350 million fundraising target, filled its $400 million legal “hard cap” for institutional limited partner commitments and was significantly oversubscribed at its final closing. Including a separate executive fund and the financial commitments of the general partner, Monomoy has the ability to invest approximately $420 million through its second fund vehicle.
Monomoy secured commitments from a substantial majority of its existing investors for Fund II and added a number of high-quality new investors from Europe and the United States to its limited partner base. Of the total capital raised for Monomoy’s Fund II, 34% came from public and corporate pension funds, 33% from funds of funds, 24% from endowments, family offices and foundations and 9% from insurance companies. The diversity of its investor base is an important part of Monomoy’s fundraising strategy and the firm’s approach to managing its assets.
“We are thrilled with the quality and diversity of the limited partners that have committed to our second fund,” said Stephen Presser, a partner at Monomoy Capital Partners. “The loyalty of our existing investor base plus strong interest from new investors reflects the success of our first fund. Our second fund will allow Monomoy to take advantage of the unprecedented turnaround opportunities we see in the middle market as we continue to emerge from the economic turmoil of the past two years.”
Bruce Ettelson, John Muno and Charles Walker of Kirkland & Ellis LLP served as legal counsel to Fund II.
MVision Private Equity Advisors, through Hussein Khalifa and Jennifer Rinehart, acted as the global placement agent for Monomoy. “MVision made a big difference in our fundraising despite the difficult environment for private equity funds in 2010,” said Mr. Presser. “Their talent and expertise allowed us to broaden our investor base and position the Monomoy franchise for continued success over the coming decade.”
Monomoy was formed by Daniel Collin, Justin Hillenbrand and Stephen Presser in 2005. The firm targets sound businesses with $70 to $400 million in annual revenues in the manufacturing, services, distribution and consumer sectors facing operational, financial or strategic stress. With a staff of 20 investment professionals, including eight operating professionals, Monomoy implements customized business improvement programs at each portfolio company that reduce operating expenses, increase profitability and encourage meaningful growth.
Through its debut fund, Monomoy has completed 30 transactions over the last five years and currently owns ten businesses that collectively employ more than 4,000 team members in the United States, Europe, Mexico, South America and Asia. Please visit www.mcpfunds.com for a detailed review of Monomoy and its portfolio.