O2 Investment Partners raises through downturn, collects $175m for first close

O2 Investment Partners collected $175 million for a first close on its third fund, which is targeting $225 million, a source told Buyouts.

The firm is one of the few emerging managers to raise through the downturn and still successfully attract capital from limited partners. LPs these days are mostly turning to their established managers and away from forming new relationships.

O2 is different from a lot of other firms in that it is based out of Bloomfield Hills, Michigan, and targets investments in the lower mid-market. It particularly looks for majority stakes in B2B services and niche industrial companies, with a preference for companies in the Midwest and Great Lakes region.

Metric Point Capital is working as exclusive placement agent on the fundraising.

O2 is led by managing partners Todd Fink and Jay Hansen. The firm launched in 2010 and its management company is principally owned and controlled by Fink, according to O2’s Form ADV. As of April 30, 2020, it managed about $342.9 million.