Industrial specialist Greenbriar returns to market with $2.75bn Fund VI

Performance may give Greenbriar an edge in a difficult fundraising environment. Fund V was as of March earning an 84% gross IRR, while Fund IV was earning a 76.3% percent gross IRR.

Greenbriar Equity Group launched a sixth industrial-focused buyout offering, as private equity GPs continue to grapple with fundraising challenges.

Greenbriar Equity Fund VI is targeting $2.75 billion, according to materials prepared for Arkansas Teacher Retirement System. The vehicle’s hard-cap is $3.25 billion.

A first close is expected next month and a final close in January. Evercore is the placement agent.

Fundraising has become tougher for GPs due to a crowded marketplace and supply curbs erected by overallocated LPs. This is borne out in Buyouts data, which showed US funds securing almost $255 billion in the first half, down 18 percent from a year earlier.

Greenbriar’s Fund VI arrives more than a year after the close of its predecessor at $1.68 billion. In 2021’s robust market, Fund V did especially well, with the firm hiking the target to $1.6 billion from $1 billion, Buyouts reported. It finished at double the size of Fund IV.

Despite the onset of challenges since then, Greenbriar appears to have similar aspirations for its latest flagship offering. If Fund VI reaches the hard-cap, it will be 93 percent larger than Fund V.

Greenbriar was founded in 1999 by Joel Beckman (who has retired), Gerald Greenwald and Reginald Jones. It carved out a specialization in advanced manufacturing and supply chain and business services, where competition from other PE firms is relatively limited.

In advanced manufacturing, dealflow is sourced in spaces like aerospace and defense, industrial, rail and vehicle. In supply chain/business services, the focus is on business services, logistics, specialty distribution, transportation and vehicle aftermarket support.

Greenbriar targets market-leading US companies in these subsectors, typically with EBITDA of $20 million to $100 million and values of $200 million to $1 billion, ATRS documents said. Control investments range from $80 million to $300 million.

Post-investment, portfolio companies are assisted by a 40-plus person operating network led by Greenwald.

Fund V was deployed at a rapid pace, with some 60 percent of capital invested as of March, ATRS materials said. Platform investments announced this year include The Facilities Group, a facilities maintenance solutions provider, and JEGS Automotive, an online aftermarket auto parts and accessories retailer and distributor.

In addition, Greenbriar recently sold helicopter mission equipment solutions provider DART Aerospace. The buyer, TransDigm, agreed to pay about $360 million. The firm also sold logistics and transportation services company BDP International to PSA, reportedly for more than $1.5 billion.

Fund VI will maintain the strategy, using the deeper capital pool to build a larger portfolio of 12 to 15 investments.

Performance may give Greenbriar an edge in a difficult fundraising environment. Fund V was as of March earning a 1.5x gross multiple and an 84 percent gross IRR, according to ATRS documents. Fund IV was earning a 4.4x gross multiple and a 76.3 percent gross IRR.

Based in Rye, New York, Greenbriar is led by five managing partners, including Jones, a former Goldman Sachs executive. The others are Niall McComiskey, Jill Raker, Noah Roy and Michael Weiss.

Greenbriar declined to provide a comment on this story.