Firm: Fisher Lynch Capital
Fund: Fisher Lynch Co-Investment Partnership II LP
Target: $1.055 billion
Amount Raised: $1 billion
The firm is managing the new vehicle,
It is unknown where the additional $55 million will come from—be it an investment from the general partner or a third-party. An executive from Fisher Lynch Capital declined to comment via email, deferring only to what was listed in the regulatory filing.
Co-investment and other direct investment programs are growing in popularity among LPs as they look for ways to bypass the management and deal fees associated with traditional fund structures. A co-investment vehicle such as Fisher Lynch Capital’s gives its LPs exposure to deals sourced by a diverse range of firms for the price of a single management fee.
During Fund II’s investment period, Fisher Lynch Capital will collect a management fee based on a percentage of the vehicle’s total commitments. Once the three- to five-year investment period closes, the management fee will be based on a percentage of the fund’s invested capital, according to the regulatory filing and meeting minutes from the Washington Sate Investment Board.
Fisher Lynch Capital’s co-investment strategy calls for investments that range from $10 million to $100 million each. Executives that run the strategy typically focus on LBOs and growth capital deals sourced by the general partners of either Oregon or Washington State, but they are also free to participate in venture capital, mezzanine and distressed deals, according to the firm’s Web site.
Capital from the firm’s first co-investment fund, which closed on $500 million in 2006, was also split 50/50 between Washington State and Oregon. Deals from that fund included a co-investment in Education Management Corp., a for-profit education provider that was acquired for $3.4 billion in a June 2006 deal led by