TZP Group LLC has raised $565 million for its oversubscribed third private equity fund, beating its $450 million target. TZP Capital Partners III’s limited partners included sovereign wealth funds, pension plans, endowments, fund of funds and family offices. The fund will invest in business and consumer services companies with an EBITDA over $10 million. No placement agent was used for TZP III.
New York, NY — April 13, 2017: TZP Group, LLC (“TZP”) is pleased to announce the closing of TZP Capital Partners III, L.P. (“TZP III”), a private equity fund with $565 million in capital commitments. TZP III completed its fundraise above its initial cap in less than three months and was oversubscribed from its initial $450 million target. TZP III’s limited partners consist of existing prior TZP funds’ investors, as well as new investors representing leading sovereign wealth funds, pension plans, endowments, fund of funds and family offices.
Consistent with TZP II, TZP III will focus on control investments in business and consumer services companies with greater than $10 million in EBITDA. TZP targets companies with solid historical profitability and sustainable value propositions, and seeks to be a “partner of choice” for business owners and management teams. Each of the twenty-one portfolio companies across the TZP funds reflects a “partner of choice” transaction, where the selection of the private equity firm was a key determinant in the process. TZP is focused on business and consumer services verticals where the firm’s investment professionals have significant operating and transaction experience.
These verticals include: franchising, outsourced business and IT services, marketing and media services, travel and hospitality services, consumer, real estate services and specialty finance.
“We are grateful for the tremendous level of support we received from our TZP II investors and are excited to welcome a prestigious group of new investors in TZP III,” stated Sam Katz, Managing Partner and Co-Founder. “The investor base recognized the quality and success of our team and appreciated its commitment to continuous improvement of our well designed investment process. We look forward to continuing to build upon the leading brand we have established in the lower middle market on behalf of the investors in TZP III.”
Together with Sam Katz, the firm is led by Partners, Vlad Gutin, Dan Galpern and Harris Newman, as well as 19 other investment professionals from offices in New York, NY, San Francisco and Seattle, WA. TZP did not use a placement agent for TZP III and Robert Blaustein of Kirkland & Ellis LLP served as legal counsel in the formation of the fund.
About TZP GROUP, LLC
TZP Group, a private equity firm with $1.3 billion raised since inception across its family of funds, is focused on investments in business and consumer services companies. Founded in 2007, TZP targets companies with solid historical profitability and sustainable value propositions and aims to be a “Partner of Choice” for business owners and management teams. TZP seeks to invest primarily in closely-held, private companies where the owners desire to retain a significant stake and partner with an investor with complementary operating and financial skills to accelerate company growth, increase profitability, and maximize the value of their retained stake. TZP leverages its investment professionals’ operating and investment experience to provide strategic and operational guidance and is dedicated to long-term value creation. For more information, please visit www.tzpgroup.com.