Similar to its preceding funds, the Chapel Hill, N.C.-based investment adviser and fund of funds manager has earmarked the new vehicle for a mix of buyout, real estate, energy and venture capital funds.
On the buyout side of the ledger, Morgan Creek favors shops that focus on the small end of the middle market, such as
About half of the new fund’s capital will be invested in assets outside the United States. The firm recently expanded into Asia and has two principals, Managing Directors Nirav Kachalia and Jason Zhang, on the ground in China.
President and Chief Investment Officer Mark Yusko founded the firm in 2004 after six years as CIO at the
Charlotte, N.C.-based CapitalSouth focuses mainly on companies in the southern United States, but it does consider investments nationwide. The firm shies away from startup companies, turnaround opportunities and businesses outside the United States. CapitalSouth deploys $3 million to $15 million in most deals, but occasionally as much as $25 million.
Roughly a third of the limited partners in the new fund are small banks, which are kicking in about $100 million. The other $200 million comes in the form of loans from the U.S. Small Business Administration and another large lender, President and CEO Joseph Alala III recently told The Charlotte Observer.
Last year, in addition to launching the fund, CapitalSouth expanded the firm’s geographic footprint. In late 2007, Kenneth Berryman joined as a director and opened an office in Louisville, Ky., while Director Jay Turner signed on earlier this year to open an outpost in Dallas and source deals in the Southwest. The firm has seven investment professionals. The firm also has offices in Raleigh, N.C., and Tampa, Fla.
Thomas Lynch, formerly the founder and managing director at Lazard Capital Partners, a buyout firm affiliated with investment bank Lazard, founded Mill Road in 2005. Lynch is also senior managing director of Mill Road Associates, a financial advisory services firm he founded in 2000.
Working alongside Lynch is Jack Roberts, managing director, who has 28 years of experience in telecommunications and related industries. Roberts also was director of finance at
Lynch and the other partners had been investing their own money before raising their first fund. They are also significant investors in the fund. Triago, a Paris, France-based fund placement agency, helped raise the pool. So far, the firm as made more than 12 investments.