Brightstar Capital set to raise second fund

Middle-market investor Brightstar Capital Partners is preparing to raise its sophomore fund, sources familiar with the fundraising told Buyouts.

The New York firm hired Eaton Partners as a placement agent, the people said. Brightstar is aiming to raise more than $700 million; however, the official target is currently undetermined, they said.

The firm raised $710 million for Brightstar Capital Partners Strategic Fund I, which closed in March 2018. The debut fund was one of the largest first-time private equity fundraisings in 2018, according to PitchBook data.

Brightstar Capital Partners Strategic Fund I is nearly 75 percent deployed, the sources said.

So far, Brightstar has made investments in three companies: Global Resale, an aftermarket IT service company; Qualtek, a provider of turnkey solutions to telecom and power sectors; and Texas Water Supply & Co, an owner and operator of water wells in Texas Hill Country region.

Brightstar, led by CEO and Managing Partner Andrew Weinberg, began operating in July 2015. Weinberg founded the firm after leaving Lindsay Goldberg, where he was a partner.

Brightstar focuses on the middle market and typically makes control-oriented investments between $50 million and $250 million. It invests solely in family and entrepreneur-owned businesses across a variety of market segments.

Weinberg declined to comment on the fundraising, but he spoke generally about the firm. For example, he said the market segments Brightstar targets typically align with areas of expertise for the firm’s partners.

“We look back to where we have experience in both investing and operating companies,” he said. “The companies that we invested in and plan to invest in the coming months are the companies in logistics, in water infrastructure, and generally, I’d say, in business and telecom services.”

Brightstar’s partners include Raul Deju, who has a doctorate in hydrology, Tom Meredith, former CFO of Dell Computer, and Todd Brock, former COO of The Brock Group.

Action Item: Reach Brightstar at info@brightstarcapitalpartners.com.