Prelude closes new fund to acquire founder-owned businesses

Prelude Partners closed its oversubscribed inaugural fund, Prelude Partners Fund LLC. Prelude will target businesses with between $10 million and $50 million in annual revenue and at least $2 million in EBITDA, with a focus on founder-owned companies.


IRVINE, Calif., Feb. 19, 2016 /PRNewswire/ — Prelude Partners today announced the closing of its inaugural fund, Prelude Partners Fund, LLC, which was oversubscribed despite its limited offering to a small circle of prominent investors.

Prelude will target businesses with $10 million – $50 million in annual revenue and at least $2 million in EBITDA, with a unique focus on founder-owned companies. “The approaching wave of retiring business owners is larger than many people realize.  Closely-held and family-owned businesses are facing critical decisions regarding their future and legacy—and we offer a unique solution,” saidTanner Ainge, Prelude’s founder and Managing Partner.

“Our approach is attractive to many founders because it is not just a financial transaction for us.  When we acquire a business, our sole focus for the next decade becomes to preserve and grow the business, while keeping its culture, values and reputation intact,” continued Ainge.  “We don’t just invest money.  I will personally relocate and devote 100% of my time to ensure a smooth succession is carried out according to plan.”

Prelude’s investor group is comprised of a small circle of prominent business leaders, including a handful of entrepreneurs and executives that grew small and medium sized businesses into multi-billion dollar enterprises, faculty members from Stanford Graduate School of Business and founders of top-performing private equity firms.  “Our investor group will form the board of the company we acquire,” remarked Ainge, “and they will be the perfect guides since most of them have previously served as senior managers of businesses that achieved incredible success.”

Prelude noted that they will be conducting a national search for great businesses and will be extremely active in the marketplace with the intent of deploying their capital in the next 12 – 24 months. Their broad industry focus is within the services sector of the economy, including healthcare services, insurance, education, corporate/legal services and many other niche sub-verticals—with a strong preference for business models with significant recurring revenue.