‘Mini Apollo’ Gamut targets $750 mln for debut fund

Gamut Capital Management, launched by former Apollo Senior Partners Stan Parker and Jordan Zaken, is targeting $750 million for its debut fund, which will mirror Apollo’s strategy in miniature, according to three people who have heard the firm’s fund pitch.

This means Gamut can do regular-style buyouts, but also will buy debt when times are tough, said two of the people, both of whom are LPs.

“They’re positioning themselves as a small version of Apollo,” the first LP said.

The second LP said: “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.”

Gamut is expected to hold a “significant” close by the end of the year, according to the third person, a market source. UBS is working as placement agent on the fundraising. Bloomberg reported on the fundraising earlier.

The target is robust for a first-time fund, but the second LP predicted that the firm will likely hit its target. “These guys have a lot of experience. Whether that translates over to the middle market, that’s a bit of a question,” the LP said.

Gamut will invest in everything from corporate carve-outs to LBOs to distressed investments for control, the second LP said. It’s not clear what industries Gamut will target.

Zaken, who joined Apollo in 1999 and left last year, worked on energy and power investments. Parker, who joined Apollo in 2000 and left last year, focused on the telecom industry, according to a New York Times report.

Gamut does not appear to have a website. Parker did not respond to a connection request over LinkedIn.