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August 2010
Prospect Partners Announces Close of $200 Million Fund III
Prospect Partners, LLC has announced the successful closing of its third private equity fund, Prospect Partners III, L.P. (Fund III) at $200 million, above the firm's original hard cap of $185 million. Fund III is the successor to Prospect Partners II, L.P., a $165 million fund closed in 2004, and Prospect Partners, L.P., the firm's $105 million debut vehicle raised in 1998. Prospect Partners now manages $470 million in committed capital. The majority of the firm's Fund III commitments came from prior limited partners, joined by several new investors.
Like its predecessor funds, Fund III will invest exclusively in small companies in the United States across a broad range of specialty manufacturing, distribution, and service industry segments. Specifically, Prospect Partners targets management-led leveraged recapitalizations and acquisitions of niche market leaders that generate revenues typically under $75 million, backing strong management teams of well-positioned, growth-ready companies.
Limited Partners in Fund III include leading global financial institutions, financial asset management firms, fund-of-funds, and university endowments.
Prospect Partners has become the nation's most active private equity buyer of smaller lower-middle-market companies. In the last 12 years, the firm has invested opportunistically nationwide in nearly 80 leading companies across more than 50 niche industry segments.
"We are very pleased with the reception Prospect Partners III received from such a highly-respected group of institutional investors," said Rick Tuttle, a Prospect Partners Founding Principal. "The ongoing support of our long-term limited partners is an indication of the success Prospect Partners has had in working with talented management teams to build strong companies and achieve great outcomes. We see tremendous continued opportunities in the small-company market, and remain committed to being the top private equity firm focused solely on investing in this segment."
Prospect Partners is led by Mr. Tuttle along with Founding Principal Louis Kenter, Principals Erik Maurer and Maneesh Chawla, and Vice Presidents Brad O'Dell and Brett Holcomb. William Glastris, Jr., a co-founder of the firm, has transitioned to Advisory and Founding Principal and will continue to provide Board-level counsel to existing portfolio companies.
Kirkland & Ellis LLP served as legal advisor to Prospect Partners in the formation of Fund III. The firm did not use a placement agent.
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