GPI Capital targets $750m for second growth fund

GPI Capital, launched in 2016 by former executives at Ontario Teachers’ Pension Plan, is targeting $750 million for its second fund, a source told Buyouts.

GPI is embarking on the challenging and crucial path of any emerging manager, raising a follow-up pool to a debut fund. The strength of a new firm’s debut fund helps dictate exactly whether the organization will continue to grow into the future or slowly wither without the ability to bring in new capital.

The firm has been out since last year raising GPI Capital Equity Opportunities Fund II, according to Form D documents. Triago, Jefferies and Oppenheimer & Co are listed as placement agents on the fundraising, according to the Form D document.

GPI was formed by ex-Ontario Teachers’ executives Khai Ha, Alex Migon and William Royan. The three were members of Ontario Teachers’ team that made non-control investments in private and public companies.

GPI makes non-control growth and structured equity investments in North American businesses in technology, consumer and industrial sectors. It targets companies with revenue of $100-million-plus and values of up to $5 billion, providing them with customized financing options that span the capital structure.

Last year, GPI led a $175 million Series G round in Hopper, a mobile-only travel booking application.

GPI closed its first fund on $722 million in 2017. Along with a co-investment sidecar vehicle, the firm expected to spend up to $1 billion by the end of its term, managing partner Alex Migon told Buyouts last year.

Another emerging manager looking to make the big jump into Fund II is Crosspoint Capital, which raised one of the largest-ever first-time tech funds last year, closing on $1.3 billion.

Crosspoint is gearing up to raise Fund II, but lost one of its senior executives, Ian Loring, who joined the firm in 2020 from Bain Capital, where he was global head of tech investing.