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Debut Co-Invest Fund Gets First Close, First Deal

Firm: Cohesive Capital Partners

Fund: Cohesive Capital Partners Fund LP

Target: $250 million

Placement Agent: None

Cohesive Capital Partners has held a first close of approximately $100 million on its debut fund, earmarked for co-investments alongside private equity firms, a source familiar with the fundraising effort told Buyouts.

The New York-based firm also recently closed its first deal, investing alongside TZP Group in its acquisition of The Dwyer Group, a Waco, Texas-based holding company of seven franchises focused commercial residential services. The seller was The Riverside Company, the price $150 million. Cohesive Capital’s investments will typically range from $5 million to $20 million

The firm is targeting $250 million for the fund, whose investors so far include Travelers Insurance and the Eastman Chemical Co.’s pension plan, according to the source. Cohesive Capital is expected to close the fund in the fourth quarter of 2011 or early in 2012. The firm has not employed a placement agent.

Cohesive Capital will typically co-invest with other firms both before and soon after a deal is closed. It also will invest alongside firms targeting distressed companies, and will replace other co-investors in existing deals looking for liquidity.

John Barber, a former managing partner of Citigroup Private Equity, started Cohesive Capital after leaving Citigroup in January 2009. Barber had spent 14 years at the bank, including nine years in its private equity group, which he helped develop.

Under Barber, Citigroup Private Equity raised two funds: a $400 million debut fund in 2000, followed by a $3.3 billion sophomore fund in January 2007. Barber’s group also participated in such notable deals as the $6.3 billion buyout of investment manager Nuveen Investments Inc. with Madison Dearborn Partners, DLJ Merchant Banking Partners, Merrill Lynch Global Private Equity and others in November 2007 and in the $7.3 billion buyout of Dollar General Corp. alongside Kohlberg Kravis Roberts & Co. in March 2007.