Gamut holds first close on $485 mln for debut fund

Gamut Capital Management held a first close on $485 million for its debut fund, according to a person with knowledge of the firm.

That means Gamut Capital Management I is more than 60 percent toward its target of $750 million. The fund hit the market in late August, the person said. Gamut had been talking to potential investors since at least last summer, sources told Buyouts in prior interviews.

UBS is working as placement agent on the fundraising.

Gamut, launched by former Apollo Global Management executives Stan Parker and Jordan Zaken, is considered by limited partners who have heard the pitch a “mini-Apollo.” This means Gamut can do regular buyouts, but also will buy debt when times are tough, according to two LPs who spoke with Buyouts previously.

“It’s like Apollo’s strategy but for the lower middle market. They have the ability to play the traditional private equity market when things are good. When things are bad, you get to take advantage of the dislocation,” one of the LPs told Buyouts in a prior interview.

The target is a large one for a first-time fund, though one of the LPs predicted Gamut would reach its goal because of the experience of the team. Zaken joined Apollo in 1999 and left in 2014. He worked on energy and power investments. Parker, who joined Apollo in 2000 and left in 2014, focused on the telecom industry, according to the New York Times.

One concern on the part of a potential LP was that Gamut’s team and infrastructure did not seem fully built out last year. Gamut now has a team of 10 people. The firm recently hired Christopher Whalen, a longtime managing director at Harvest Partners, as a partner.

Gamut also recently hired Adi Pekmezovic, a former senior analyst at Mason Capital, as an investment partner.

Action Item: Contact Gamut Capital at 212-309-2600.

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