Aurora Capital tests tough market with largest target

Aurora Capital, one of the longest tenured firms on the West Coast, is preparing to launch its seventh fund with its largest target yet, eyeing up to $2 billion for the pool in the tough fundraising market, a source told Buyouts.

Despite challenges to capital raising, GPs continue to launch new funds into the market. LPs are being quite selective on their commitments, culling their portfolios and shrinking pledge sizes as they contend with overexposure issues and tight liquidity from slowing distributions.

Still, the fundraising machine chugs along. Aurora, formed in 1991, closed its prior pool, flagship Fund VI, on more than $1.7 billion in 2021. That fund raised through the pandemic shut-down of the market, but had sourced much of its capital before the health crisis really took over.

Fund VII is expected to hold a first close later this year, the person said. PJT Park Hill is working as placement agent on the fundraising, which it has done for several prior Aurora funds.

An Aurora spokesperson declined to comment.

Aurora is led by a large partnership group including John Mapes, Josh Klinefelter, Mark Rosenbaum, Randy Moser, Robert Fraser, Matthew Laycock, Andrew Wilson and Scott Erickson, who leads business development. One long-time partner, Michael Marino, left the firm in 2021.

The firm looks for businesses valued between $100 million and $500 million, deploying equity of between $50 million and $300 million in each deal, according to its website.

Aurora targets industrial & business services, industrial technologies and software and tech-enabled services. It managed about $4.6 billion as of December 31, 2022, according to Aurora’s Form ADV.

In April, the firm invested in Impact Environmental Group, which provides products and services to the global waste and recycling industry. IEG was the ninth investment from Aurora’s sixth fund, which began investing in September 2020, according to a statement at the time.

Aurora completed the take-private of Sharps Compliance in August and the acquisition of Universal Pure in October. Recent exits include VLS Environmental Services, Pace and NTS. The firm completed 25 add-on acquisitions in the last 12-mont period ending March 31, 2023.

The firm was formed by Gerald Parsky, former assistant secretary of the treasury in the administration of President Gerald Ford. Parsky, who holds the title of senior adviser and chairman, is no longer involved in day-to-day management of the firm.