Pritzker-family-backed fund raises long-term-capital fund with other family offices

  • Assets under management: More than $1.5 bln
  • Target segments: Middle-market family/entrepreneur businesses
  • Why this is important: Family offices are collaborating on long-term funds for direct investments

PPC Partners, the Pritzker family’s direct-investment entity, closed its fund at $1.8 billion, exceeding its target of $1.5 billion.

The family, which owns the Hyatt hotel chain, Royal Caribbean cruise line and other businesses, was valued at $29 billion as of June 29, 2016, according to Forbes.

PPC Partners, launched in April, is led by Tony Pritzker, chairman and chief investment officer. Paul Carbone, formerly managing partner of the private equity group at Robert W. Baird & Co, also works on the fund.

PPC’s mandate is to acquire and operate North-America-based middle-market companies in manufacturing and healthcare.

C.H. Guenther & Son was PPC’s first acquisition, earlier this year. The Texas family-owned business produces dry and frozen-grain food products for private labels such as Pioneer, White Wings, Sun-Bird and Morrison.

The transaction was valued at about $1.4 billion, media reports said.

The PPC team started out investing with other families on a deal-by-deal basis through Pritzker Private Group Private Capital. Investments included Entact, Entertainment Cruises, LBP, PathGroup, Peco Pallet, PLZ Aeroscience Corp, ProAmpac and Technimark.

The PPC fund, which raised capital from other family offices and institutional investors, is designed as long-term capital that will allow PPC to hold investments for durations longer than traditional PE funds.

About $750 million of the capital is from Pritzker family trusts, Bloomberg reported.

PPC fund looks to invest in family- and entrepreneur-owned companies with enterprise values of $100 million to $750 million and Ebitda exceeding $15 million.

According to its latest Form ADV, PPC had 21 employees in investment-advisory roles. It had $1.5 billion discretionary assets under management in three pooled investment vehicles.

Action Item: Read PPC’s Form ADV here