Cleveland-based Resilience Capital Partners has closed its new fund, The Resilience Fund III L.P., with $222.5 million in committed capital. The fund exceeded its $200 million target, the firm said Wednesday.
Resilience Capital Partners, a private equity firm focused on buying and improving lower mid-market companies in a broad range of industries, today announced that it completed the final close of The Resilience Fund III, L.P., on May 31, 2012 with $222.5 million of committed capital. Fund III exceeded its target of $200 million through the participation of a global institutional investor base that includes pension funds, insurance companies, foundations and endowments, fund of funds, wealth managers and investment consultants.
Resilience specializes in helping businesses emerge from fatigued ownership or lending relationships, over-leveraged balance sheets and a variety of special situations such as turnarounds, restructurings or corporate divestitures. The firm invests in niche-oriented manufacturing companies and business services companies located in the Midwestern and Mid-Atlantic United States with sustainable market positions and a clear path to cash flow improvement to guide them through a cyclical downturn, an adverse credit situation or ownership transition.
“We are very pleased to complete our fundraising for Fund III and receive commitments from some of the world’s most respected private equity investors. The confidence they have placed in us is a testament to the results we have generated since founding the firm in 2001,” said Bassem Mansour, Co-CEO of Resilience. “We believe businesses will survive and thrive if they are properly capitalized with both human and performance-improvement capital.”
“Our team generates results through a roll-up-the-sleeves approach that transforms good companies into more profitable and successful enterprises,” said Steve Rosen, Co-CEO of Resilience. “We invest in what we know – the lower middle-market in the heartland of America – and draw on a deep bench of operating expertise to enhance a company’s cash flow, competitive positioning and prospects.
Fund III’s capital comes from a variety of sources including pension funds, insurance companies, foundations and endowments, fund of funds, wealth managers and investment consultants. Approximately 60 percent of the fund’s capital was provided by investors domiciled in the U.S., with the remainder from investors domiciled in Europe and the Caribbean.
“We are delighted that Resilience was able to exceed their target in a very challenging fundraising environment”, said Paul Delaney, a Senior Managing Director at Griffin Financial Group LLC, which served as the global financial advisor and placement agent for Fund III. “We appreciate the strong support new institutional limited partners placed in the Resilience team and their focused investment strategy.”
Fund III currently has three platforms in place including North Coast Minerals (industrial minerals and silica sands); WT Hardwoods Group (hardwood lumber and flooring); and Thermal Solutions Manufacturing (heavy-duty heat exchange components). Resilience expects to build a portfolio of 10 to 12 platform companies in Fund III that participate in a range of manufacturing, business services and distribution industries.
Griffin Financial Group, LLC and Jones Day served as placement agent and legal counsel, respectively, to Resilience for Fund III.
For more information, please visit www.resiliencecapital.com.
About Resilience Capital Partners
Headquartered in Cleveland, Ohio, Resilience Capital Partners invests in niche-oriented manufacturing and business service companies located in the Midwestern and Mid-Atlantic United States with sustainable market positions and a clear path to cash flow improvement. Resilience targets platform businesses with $25 to $250 million in revenues across a broad range of industries where it can improve a company’s operations, competitive positioning and profitability. Since its founding in 2001, Resilience Capital has invested in 24 companies under 17 platforms. Its portfolio companies today employ more than 5,000 people in 14 states and collectively represent over $2 billion in revenues. Resilience manages in excess of $320 million for its global investor base which includes pension funds, insurance companies, foundations and endowments, fund of funds, wealth managers, and investment consultants.