Firm: CI Capital Partners LLC
Fund: CI Capital Investors II LP
Amount raised: $620 million ($500 million target)
Placement agent: Lazard Freres & Co.
Legal adviser: Paul, Weiss, Rifkind, Wharton & Garrison LLP
The New York firm announced that it held a final close for its
Founded in 1993 as
“While it took us a fair amount of time, we’re pleased with the outcome,” Lefkowitz said. CI Capital Partners went to market in the fall of 2008, just as financial markets were tumbling into crisis. The firm had a first close in November 2008, with commitments from Bruce Kovner, the founder of Caxton Associates, and a handful of close associates. Those investors gave the fund an extension on its fundraising period as markets froze in 2009, but the reception improved markedly as economic conditions improved as 2010 progressed, Lefkowitz said.
CI Capital Partners targets mid-market companies in fragmented industries where it can grow its portfolio companies by acquisition. The firm prefers to write checks of $25 million to $100 million per transaction in industries including business and consumer services, distribution and government services, including defense, Lefkowitz said. “We’re interested in buying things that are capable of scaling.”
The firm has already made two investments out of Fund II, including a deal in January for
Another portfolio company, American Residential Services LLC, has grown into a national provider of cooling, heating and plumbing services to the home repair market through more than 20 acquisitions, and that number eventually could reach 40 to 50 add-ons, Lefkowitz said. “We’ve been able to partner with exceptional teams that have been able to scale companies in the past.”