Two longtime executives from Shamrock Capital Advisors, William Wynperle and Alan Resnikoff, are raising their debut fund for their new firm Coral Tree Partners, which they launched earlier this year, sources told Buyouts.
Coral Tree is among a handful of first-timers braving the fundraising markets, which have become more open to emerging managers. First-time fundraising remains challenging as founders have to prove their past performance and convince potential investors they are talented dealmakers who can also build organizations.
Gen II, which partnered in Buyouts Emerging Manager Survey 2021, said it found more first-time opportunities this year than at any time since it began tracking the segment. These opportunities include a record number of debut funds seeking more than $1 billion.
“I would anticipate continued strong demand for emerging managers, because many emerging managers are on to a lot of these trends… [like] sector-focused, long-hold, growth, ESG, they have an angle,” Hugh MacArthur, head of Bain & Co’s global private equity practice, told Buyouts in a recent interview.
Coral Tree is targeting $350 million for its debut fund, which will target investments in lower mid-market companies in the media, entertainment, communications and related business services segments, mostly in North America, according to Coral Tree’s Form ADV.
Credit Suisse is working as placement agent on the fundraising, according to a Form D fundraising document filed in June. The Form D did not include details of the target or amount raised. The firm managed about $266 million as of August 30, 2021, the firm’s Form ADV said.
Fund I charges a 2 percent management fee on committed capital and a 20 percent performance fee, the Form ADV said.
Wynperle was a long-time executive at Shamrock, where he had worked since 1998, according to his LinkedIn profile. He left the firm last year, his profile said.
Resnikoff worked at Shamrock for almost 12 years, leaving last year as a partner. He focused on sports, gaming, content and marketing-services businesses, according to his LinkedIn profile. He was a director at numerous Shamrock portfolio companies, including Ad Results Media, Pixellot, Appetize, Maple Media and Silvergate Media, his profile said.
Shamrock closed its latest flagship fund on $1 billion in June.
Another first-timer in the market is Interlock Equity, launched by former executives with RLH Equity Partners. Interlock Fund I is targeting $250 million, Buyouts previously reported.