Gallant Capital Partners is targeting $600 million for its second fund in the tough fundraising markets, sources told Buyouts.
Gallant is among a slew of emerging managers trying to attract capital from LPs who are more inclined to stick with their established relationships. As larger managers are coming back quicker and with larger funds, early managers are having a harder time finding their way into LPs’ quickly dwindling allocations.
“LPs have had to make, and will make, really tough decisions,” a PE fundraiser said. “There’s only so much capital that’s available, and the amount of re-ups is much greater than the available capital.”
Gallant Capital Partners II has been in the market raising this year. Recently, the fund received a commitment from the Arlington County Virginia Employees’ Retirement System, P&I recently reported. The firm filed a Form D fundraising document in April for the pool, without disclosing the target or how much the pool has raised so far.
PJT Park Hill is working as placement agent on the fundraising, according to the Form D.
Gallant focuses on investing in lower mid-market complex situations and carve-outs in technology, industrials and business services sectors. The firm in February announced it acquired Pro-Vac, which provides subsurface infrastructure services including stormwater and sewer maintenance, pipeline jetting, repair and grouting and CCTV pipe inspections.
It is principally owned by partners Jon Gimbel and Anthony Guagliano, according to the firm’s Form ADV. The firm in 2018 hired Desmond Nugent from OpenGate Capital as partner and head of operations.
Gimbel formerly worked as managing director on Gores’ small-cap team, while Guagliano worked as a managing director at Gores.
The firm managed about $744.3 million as of December 31, 2021, the Form ADV said. The firm closed its debut fund on $378 million in 2020, beating its $300 million target.
Update: This report was updated to more accurately reflect the firm’s ownership.