Insight

ACON Investments collects about $700m for continuation fund

The fundraising is in connection with the partial sale of ACON's investment in New Era Cap as well as increasing its existing ownership stake.

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  • Managed by ACON, the fund’s limited partners include Apollo, GCM Grosvenor, Hamilton Lane and Neuberger Berman
  • New Era Cap serves as the official headwear license partner for Major League Baseball, the National Football League and the National Basketball Association
  • ACON made an initial investment in New Era Cap in January 2021

ACON Investments has raised about $700 million for a new continuation fund. The fundraising is in connection with the partial sale of ACON’s investment in New Era Cap as well as increasing its existing ownership stake.

Managed by ACON, the fund’s limited partners include Apollo, GCM Grosvenor, Hamilton Lane and Neuberger Berman.

New Era Cap designs, markets and distributes over 200 million pieces of headwear and apparel. The brand serves as the official headwear license partner for Major League Baseball, the National Football League and the National Basketball Association.

ACON made an initial investment in New Era Cap in January 2021.

New Era Cap will continue to be led by Chris Koch, its fourth-generation CEO, whose great grandfather, Ehrhardt Koch, founded New Era Cap in 1920 in Buffalo, New York.

Ken Brotman, a founding partner of ACON Investments, said in a statement: “New Era Cap represents a unique and proprietary opportunity in which ACON served as an early partner for the company and the first institutional equity capital for this 102-year old iconic brand. We are humbled to be the Company’s trusted partner and have great respect for New Era Cap’s long and rich history and what Chris Koch and the management team have built.”

As part of the transaction, Major League Baseball, the National Football League and the National Basketball Association will become minority owners in New Era Cap.

ACON was represented in the transaction by Evercore. Jefferies LLC also acted as a financial advisor to ACON while Winston & Strawn served as ACON’s legal advisor. Truist Securities acted as exclusive financial advisor and Bryan Cave Leighton Paisner served as legal advisor to New Era Cap.

Based in Washington, D.C., ACON has managed $6.9 billion in assets since its inception.