Vanterra Capital has held a $152 million first close on its debut fund-of-funds, and expects to hit its $300 million target early next year. The New York-based firm focuses on opportunities in the lower middle-markets, and is managed by Shad Azimi (former principal with New York Life Capital Partners), Alan Quasha (CEO of Quadrant Management) and Jason Young (managing director of Quadrant Management).
Less than four months after commencing operations, private equity firm Vanterra Capital Ltd. (“Vanterra”) successfully closed its first round of $152 million for its debut fund. Vanterra anticipates another closing to reach $300 million by early next year in addition to the separate accounts that it will manage.
Vanterra invests in smaller and emerging private equity funds and makes direct equity investments focused on the lower middle market. Vanterra selects “best of class” managers with differentiated strategies and seeks to leverage its strategic investments in these managers to pursue select co-investment opportunities as well as execute direct deals sourced through its proprietary origination network.
“The current market dislocation and capital scarcity has created tremendous opportunities for our strategy,” said Shad F. Azimi, Principal at Vanterra. “In fact, the significant interest in our fund, in spite of the challenging fundraising market is validation of our thesis. We focus on identifying lower middle market funds with unique strategies that target high growth markets characterized by greater market inefficiencies, more proprietary deal flow, and less leverage – all of which lead to greater value creation opportunities.”
“In addition, many investors are realizing that investing in large brand name funds does not necessarily correlate to strong performance,” he added. “Instead, we focus on smaller managers whose greater alignment of interests has historically led to higher absolute returns.”
Vanterra, whose principal investor is an affiliate of Quadrant Management, Inc., is focused on identifying opportunities in the U.S. lower middle market as well as in specific emerging markets such as India, China, the Middle East, Africa, and Eastern Europe. As such, the portfolio will be diversified across geographies, industries, vintages, and strategies.
“The cornerstone of the Vanterra business model is to establish longstanding relationships with our partners – both our underlying fund managers and our investors – and leverage their value both as a source of high quality deal flow and as a unique due diligence network,” said Alan Quasha, Principal at Vanterra and CEO of Quadrant Management. “In the current investment environment, deal structuring and execution are no longer considered competitive advantages, but rather prerequisites for success. The powerful information flow created through our extensive network of underlying fund managers, portfolio company management, and value-added investor base gives us a unique competitive advantage and the data and insights necessary to generate superior investment returns.”
Vanterra’s founders are Shad F. Azimi, formerly a principal at New York Life Capital Partners, a $7 billion private equity program; Alan Quasha, CEO of Quadrant Management, Inc.; and Jason Young, a Managing Director of Quadrant Management. Vanterra’s advisory board includes, among others: Professor Glenn Hubbard (Dean of Columbia Business School), John Schumacher (CEO of New York Life Capital Partners), Khaled Al-Muhairy (Founder and CEO of Evolvence Capital), and Hassan Nemazee (Chairman and CEO of Nemazee Capital).
About Vanterra Capital Ltd.
Vanterra Capital is a global private equity firm that manages assets for a diverse investor base of ultra high net worth partners and leading institutions. Vanterra’s private equity platform invests in “best of class” small and emerging private equity funds and makes direct investments to generate superior long-term returns. For more information visit: www.vanterra.com
About Quadrant Management, Inc.
Quadrant is a principal investment management firm focused on the U.S. and emerging markets that has successfully managed investments in domestic and global markets throughout multiple economic and capital market cycles for the past 30 years. Quadrant and its affiliates manage in excess of $3 billion with offices in the U.S., China, India, Eastern Europe, the Middle East, and Africa.