Olympus Partners seeks $3bn in rollout of latest buyout fund

Olympus Partners, one of the industry’s oldest private equity firms, launched an eighth offering for mid-market buyout and expansion deals.

Olympus Growth Fund VIII is targeting $3 billion, according to Plymouth County Retirement Association documents. It is expected to wrap up in January 2024.

Fund VIII comes six years after the close of its predecessor, making Olympus something of a contrarian at a time when many GPs are accelerating fundraising. The $3 billion target matches the amount raised by Fund VII, which also varies from recent practice, at least prior to the market downturn.

Olympus was founded in 1988 by Rob Morris, who continues to lead it as chairman and CEO. Morris is also the author of Rob’s Blog, a colorful series of brief articles on private equity topics mixed with detailed cultural, historical and political references.

In his May 2023 article, discussing in part the considerable exuberance that preceded today’s slower dealmaking, he cites the Will Rogers quip “always drink upstream from the rest of the herd.” That advice, Morris notes, “still holds for careful investors.”

Olympus’ strategy appears to be unchanged over time. It makes control and minority growth investments, ranging from $75 million to $500 million-plus, in North American mid-market companies in business services, consumer, financial services, healthcare, industrial and restaurant sectors, among others.

More than 80 percent of capital invested has gone to leveraged buyouts, the firm’s website says, where Olympus is the sole or lead investor.

Targets are competitive, well-run businesses in robust niches with growth-oriented operating forecasts and reliable operating track records. Along with significant equity participation, Olympus looks for alignment with management and credible exit opportunities.

Since inception, Olympus has completed more than 95 platform deals and over 130 add-ons. It latest platform, announced this month, is MEI Rigging & Crating, a rigging and machinery moving, millwrighting, industrial storage and equipment crating provider. MEI was acquired from Dorilton Capital.

Earlier this year, Olympus agreed to buy a majority stake in International Wire Group, a copper and copper-alloy wire products maker, from Atlas Holdings. And last November, it announced an exit, agreeing to sell Liquibox, a sustainable liquid packaging solutions maker, to Sealed Air for $1.15 billion.

Olympus’ performance is solid, according to PCRA documents, with combined equity funds generating a 21.9 percent net IRR as of December 2022. Fund VII was earning a 1.9x net multiple and a 35.9 percent net IRR.

Morris oversees an investment team of 21 professionals working from the firm’s Stamford, Connecticut, office. Senior team members include managing partners Manu Bettegowda, David Cardenas, Jim Conroy and Lou Mischianti, all of whom joined in the 1990s.

Olympus did not respond to a request for comment on this story.