York Capital Management has closed its third North American middle-market special opportunities private equity fund at about $800 million. York Special Opportunities Fund III targets control investments in middle-market businesses led by experienced management teams. Campbell Lutyens & Co was the placement agent while Kirkland & Ellis LLP provided legal counsel.
NEW YORK–(BUSINESS WIRE)–York Capital Management (“York”), a global private investment firm, today announced it has successfully closed its third and largest ever North American middle-market special opportunities private equity fund, York Special Opportunities Fund III, L.P. (“Fund III”), with final capital commitments of approximately $800 million.
In line with its predecessor funds, Fund III’s investment strategy primarily targets control investments in middle-market businesses led by experienced management teams. Fund III generally employs a conservative approach to leverage, targeting investment returns from growth and achieving management plans. It seeks to take advantage of unique company situations across cycles and sectors and has a target equity investment size of $35–$200 million. York’s Private Equity strategy has a flexible investment mandate, enabling it to tailor each platform investment to the needs of existing owners and management teams while offering creative structuring options.
Zalmie Jacobs, Partner and Head of Private Equity, commented, “We are grateful for the strong institutional support from both longstanding York clients and new investors to Fund III. We are eager to bring our financial and operational expertise to bear and assist companies and management teams in navigating these turbulent times and executing their growth strategies. Our investment team has deep experience in varying market conditions and also benefits from the capabilities and investment insights of York’s global platform.”
Jamie Dinan, CEO and Founder of York and a member of Fund III’s investment committee, added, “This is a great time to have substantial dry powder and a team experienced in supporting management amid market disruptions and an uncertain climate.”
York also announced that it has successfully completed its first investment in Fund III, acquiring The Good Feet Store. The company is a leading manufacturer and franchise retailer of personalized arch supports and related products. It is the second largest brand in the attractive and fast growing $1.5 billion orthotics insert market. The company controls the entire value chain including product design and manufacturing, marketing, customer experience through its own retail stores, and customer follow up after purchase. There are more than 150 Good Feet stores, over 90% of which are franchised.
Additionally, Harish Nataraj has joined York Private Equity as a Managing Director. Prior to joining York, he was a Partner and Managing Director at Angelo Gordon’s Private Equity Group, where he led investments in the financial services, consumer, healthcare services and business services industries. Prior to Angelo Gordon, Mr. Nataraj was an Associate at Kohlberg & Company. Mr. Nataraj started his career as an analyst at Bear, Stearns & Co. in the TMT Group and received a B.A. in Economics from the University of Rochester.
Mr. Jacobs added, “Fund III is off to a strong start. We are excited to work with The Good Feet Store’s management to help them expand the business. We are also very pleased to welcome Harish to our team. He brings a deep understanding of our core strategies as well as a proven track record of building businesses for the long term.”
Since York launched its middle-market special opportunities private equity strategy in 2008, it has acquired over 20 businesses and platforms. York Special Opportunities Fund II, L.P. closed in 2014 with approximately $700 million in capital commitments, and York Special Opportunities Fund I, L.P. closed in 2008 with approximately $500 million in capital commitments. York Private Equity has 15 dedicated team members.
Campbell Lutyens & Co. acted as placement agent on the fundraise. Kirkland & Ellis LLP provided legal counsel.
About York Capital Management
York Capital Management is a global private investment firm established in 1991. The firm manages approximately $18 billion in assets across public and private investment strategies, including its private equity platform, the York Special Opportunities Fund. York Capital employs approximately 60 investment professionals and 200 employees globally, primarily in New York, London and Hong Kong. For more information please visit York Capital’s website at www.yorkcapital.com.