One of Court Square Capital’s managing partners left the firm earlier this year as the firm was in the middle of raising its fourth fund, sources told Buyouts.
The departure of John Civantos, considered one of the firm’s “rock star” investors, according to a limited partner, may have helped slow the fundraising process for the firm.
Court Square is on track to raise at least $2.5 billion for Fund IV, which would put it under its $3 billion target, two sources said. Fund IV raised just over $2 billion as of July, according to a Form D fundraising document at the time. The fund has been in the market since at least the first quarter of 2018.
It’s not clear when the firm expects to close Fund IV. “They’ll finish by the end of the year,” one of the sources said, describing the fundraising as long and arduous.
To help boost fundraising, the firm has been running a process on its 2013 third fund to allow existing investors to sell interests in the pool. HarbourVest Partners is lead buyer on the deal, which will also include a shot of fresh capital into Fund IV to help drive the fundraising, Buyouts previously reported. The status of the process is not clear.
Court Square closed Fund III on $3 billion in 2013. Fund III was generating an 18.9 percent internal rate of return and a 1.5x multiple as of Mar. 31, according to performance information from the Oregon Public Employees Retirement Fund.
Civantos worked at Court Square from 2004 to March 2019, according to his LinkedIn profile. Earlier in his career, he was a principal at Hicks Muse Tate & Furst, his profile said.
It’s not clear if Cinvantos’s departure triggered any key-person provisions in the funds. Firms elect certain key executives on individual funds. If one or more of the key executives leave, limited partners have the option of shutting down the fund’s ability to make new investments pending negotiations with the firm.
Court Square likely has a multi-executive key-man arrangement. The firm is led by Managing Partners Bill Comfort, Christopher Bloise, Michael Delaney, Ian Highet, Thomas McWilliams, Joseph Silvestri, David Thomas and John Weber, according to the firm’s Form ADV.
A spokeswoman for Court Square declined to comment. Civantos did not respond to a LinkedIn request to connect.
Action Item: Check out Court Square’s Form ADV here: https://bit.ly/2xBJBci