First-timer Avance expands investment bench with ex-MSD Partners executive

As of March 31, the firm managed about $1.1 billion, indicating Avance may have met its cap for Fund I.

Avance Investment Management, a first-time manager that spun out of Palladium Equity, is building out its investment team with hefty deal experience as it works to close its debut fund.

Avance is among a crop of new firms building out their organizations and working to raise capital from LPs in a challenging fundraising environment. LPs generally are sticking with their established managers, who are coming back faster, with larger funds and new products, leaving little room for fund investors to form new relationships, especially with new shops.

Avance, which launched in 2020, hired ex-MSD Partners executive John Civantos as a senior partner. Civantos worked as a managing director and co-head of the private capital group. Civantos at MSD led investments in West Monroe Partners and Nutrisystem, according to a statement from Avance.

The firm is expected to officially announce the hire later today. Civantos earlier in his career worked at Court Square Capital Partners on investments in System 1, Dynata, DISAa Global Solutions, Vestcom, IWCO Direct and Mosaic Sales Solutions, Avance said in a press release.

Avance was formed by managing partners David Perez and Luis Zaldivar and partner Erik Scott, all veterans of Palladium. The firm makes control investments in lower mid-market companies across business services and consumer sectors. Partner Gretchen Perkins joined from Huron Capital in 2020.

Its first platform deal was a partnership with Two Sigma Impact to acquire Wholesale Supplies Plus, which provides raw materials, supplies and packaging for soap, skincare and candle artisans, from Incline Equity, Buyouts previously reported.

The firm has been raising its debut, which had an initial target of $500 million and a hard cap of $850 million, which was boosted to $1.1 billion last year, according to a report from Los Angeles City Employees’ Retirement System. PJT Partners is working as placement agent on the fundraising.

As of March 31, 2022, the firm managed about $1.1 billion, according to Avance’s Form ADV. That indicates Avance may have met its cap for Fund I, though it’s not clear if fundraising has officially closed. A spokesperson declined to comment about fundraising.

Avance is among a host of first-time fund managers testing the stingy fundraising markets. Others include Patient Square Capital, formed by an ex-KKR healthcare executive, and Coral Tree Partners, formed by ex-Shamrock executives. Coral Tree is closing its debut fund on $450 million, Buyouts recently reported.

Correction: An earlier version of this report misstated MSD Partners’ name. The story has been updated.