Orangewood Partners raised more than $100 million in the first close of its second long-term, mid-market fund, a person with knowledge of the matter told Buyouts.
Launched in the summer, Orangewood Partners II last month raised initial commitments primarily from high-net-worth investors and institutions, the source said. Many of the investors were partners in prior deals done by the New York firm. The fund’s target and hard cap couldn’t be found by press time.
Fund II is Orangewood’s first traditional PE partnership. The firm previously invested deal-by-deal, using capital from select investors, according to its ADV filing. Portfolio companies backed in this way together make up Fund I, the source said.
Orangewood declined to comment on its fundraising activity.
Orangewood was founded in 2015 by Managing Partner Alan Goldfarb, a founding member and former principal of Carlyle Group’s global distressed and corporate opportunities fund. Goldfarb also previously was a managing director of Senator Investment Group’s special situations investments.
Goldfarb set up Orangewood to make control and structured minority investments in North American private and public businesses in industries that are either fragmented with a consolidation opportunity or undergoing significant change. The firm invests alongside owner-operators in companies with Ebitda of $5 million to $25 million or more and with a focus on consumer and multi-unit, healthcare or services.
Orangewood invests $25 million to $100 million of equity per deal. Portfolio companies are typically held beyond the traditional three-to-five-year PE investment period.
Since inception, Orangewood has invested more than $200 million of equity, the source said. Its six disclosed portfolio companies include Peaceable Street Capital, a Philadelphia-based specialty finance platform focused on small and mid-sized income-producing real estate. Launched in 2016 with Orangewood’s support, Peaceable Street recently secured a minority investment from Declaration Partners, an affiliate of David Rubenstein’s family office, Buyouts reported.
Another portfolio investment is ABTB, a Louisville, Kentucky-based Taco Bell franchisee. ABTB was established last year by Orangewood and ABDD Capital, an acquirer, developer and operator of quick-service restaurants. In April, the company announced the purchase of eight Taco Bell restaurants, bringing total locations held by it to 32.
Other Orangewood-backed businesses include Exer Urgent Care, a Los Angeles-based operator of emergency care clinics, and George Industries, an Endicott, New York-based aerospace and defense parts manufacturer.
Senior members of Orangewood’s investment team include Partner Neil Goldfarb, who joined two years ago from Starr Investment Holdings, and Principal Zach Rosskamm, who joined in 2015 from AEA Investors.
Action Item: See Orangewood Partners’ ADV filing here.