EagleTree’s Fund V closes at $1.1bn with help of Carlyle’s AlpInvest, other investors

Structured financing and minority investments from four firms, including AlpInvest Partners, helped make EagleTree Capital the largest investor in Fund V.

EagleTree Capital held a final close for its fifth flagship buyout vehicle, collecting more than $1.1 billion, according to a statement by Paul, Weiss, Rifkind, Wharton & Garrison, the firm’s legal advisor.

This suggests EagleTree Partners V finished at or just above its target, based on information contained in Form D fundraising documents issued this year and in 2019. The New York private equity firm did not release a statement, but confirmed the amount raised in a website reference.

The new fund is 39 percent larger than EagleTree Partners IV, which raised $790 million in 2016.

EagleTree was formed in 2015 by its senior partners, including Co-Managing Partners Anup Bagaria and George Majoros. Its predecessor firm was Wasserstein & Co, which spun out of Wasserstein Perella & Co following the investment bank’s 2001 acquisition by Dresdner Bank.

Fund V’s limited partners include New York State Common Retirement Fund, which committed $50 million, Buyouts’ sister publication Private Equity International reported. Prior EagleTree offerings were backed by endowments and foundations, families, government entities and pension plans, according to the firm’s site.

EagleTree’s fundraising got a leg up in January. In a statement, the firm said it secured a structured financing from Carlyle Group’s AlpInvest Partners and Alberta Teachers’ Retirement Fund Board, and minority investments from family office Misland Capital and investment firm Bullingham Capital. Terms weren’t disclosed.

EagleTree said the proceeds of the structured financing would be used to significantly increase its commitment to Fund V, making it and the firm’s employees the largest investor.

The proceeds of the minority investments, which reflect passive, non-voting stakes, would be used to enhance flexibility and support growth initiatives, EagleTree said.

Funding GP commitments to new offerings and growth initiatives are a top focus of GP stakes funds and other minority investors in PE firms. Michael Rees, head of Dyal Capital Partners, which last year raised a record $9 billion-plus for its fourth fund, told Buyouts the two objectives account for the lion’s share of Dyal’s deals.

EagleTree invests in North American mid-market opportunities in the media and business services, consumer and water and specialty industrial sectors, with Fund IV writing checks of $50 million to $250 million. Its most recent deals include last year’s acquisition of Invincible Boat, an Opa Locka, Florida, maker of high-performance saltwater fishing boats.

EagleTree, which oversees about $2.5 billion in assets, did not respond to a request for comment prior to publication of this story.

Action item: See EagleTree Capital’s ADV filings here.

(Update: Following the publication of this story, EagleTree issued a release saying it closed Fund V at $1.118 billion, exceeding the initial target. Lazard was the placement agent.)