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Orangewood, led by former Carlyle exec Goldfarb, lands $300m for Fund II

Fund II will build on Orangewood’s deal-by-deal activity by investing in special situation and growth-oriented opportunities in non-discretionary healthcare, consumer and multi-unit sectors.

Orangewood Partners, founded in 2015 by ex-Carlyle Group principal Alan Goldfarb, secured more than $300 million for its first traditional buyout fund, sources told Buyouts.

Orangewood Fund II itself raised more than $200 million, the sources said. Several parallel vehicles brought in an additional $100 million.

Fund II in late 2019 held an initial close, collecting about $100 million, Buyouts reported. Commitments came primarily from high-net-worth and institutional investors, among them partners in Orangewood’s pre-fund deals.

To date, the New York private equity firm deployed more than $250 million, much of it to pre-fund transactions, the sources said. With Fund II’s close, it manages assets of $500 million-plus.

Fund II will build on Orangewood’s deal-by-deal activity by making control and structured minority investments in special situation and growth-oriented opportunities in non-discretionary healthcare, consumer and multi-unit sectors. It will partner with entrepreneurs and owner-operators of mostly US private and public businesses, typically with EBITDA of $5 million to $25 million or greater.

A key aspect of the fund’s strategy is a long-term focus. Orangewood invests beyond the traditional three-to-five-year PE investment span, providing portfolio companies with operational and strategic support for as long as required to meet their goals.

Fund II has already made two platform investments, the sources said. They are Exer Urgent Care, an operator of emergency care clinics in Southern California, and K2 Towers, a national acquirer of wireless communication towers. Exer was backed in April 2019, while K2 was originally acquired in May 2015.

In all, Orangewood’s portfolio holds six companies. Pre-fund investments include ABTB, an owner and operator of Taco Bell franchises in the Louisville area. It was launched in 2018 by the firm and ABDD Capital.

Another deal in 2016 formed Peaceable Street Capital, a specialty finance platform targeted to small and mid-sized owners of commercial real estate. Three years later, Declaration Partners, an investor backed by David Rubenstein’s family office, acquired a minority stake, Buyouts reported.

Goldfarb founded Orangewood after a five-year tenure at Senator Investment Group, where he was a managing director and head of special situations. He was with Carlyle between 2003 and 2010, working as a founding member and principal in the distressed and corporate opportunities group.

Goldfarb leads an investment team of six. Members include managing partner Neil Goldfarb, who joined in 2017 from Starr Investment Holdings, and principal Zach Rosskamm, hired at inception from AEA Investors. Three others were recruited since 2019, among them vice president Chase Lang, also formerly with Starr.