Quad Partners Raises $200M For Fund II

New York buyout shop Quad Partners has closed its fourth fund at its hard cap of $200 million, the firm announced.

Quad Partners IV LP is a step up in size from its 2007-vintage Fund III, which closed at $125 million, Lincoln Frank, managing partner, told Buyouts.”We had demand for substantially more,” Frank said. “But $200 million is the right size for the kinds of deals that we do.”

Fundraising went smoothly, he said. “We were supported by a good group of limited partners who supported our previous fund.”

In the past, Quad Partners has received LP commitments from such groups as Auda Private Equity, CMS Companies, Goldman Sachs, HarbourVest, Landmark Partners, Merrill Lynch, Morgan Stanley, Partners Group and others, according to sister Web site peHub.

The 12-year-old firm focuses exclusively on education-related companies. It invests in small and mid-sized education businesses, primarily as part of buyout deals, but it also invests in growth capital deals, recapitalizations, refinancings and shareholder liquidity.

Quad Partners’s primary targets are for-profit education companies, including direct education, childcare, K-12 and post-secondary schools, as well as products and services companies that support education, Frank said. The firm seeks companies with established business models, positive cash flow and significant growth potential.

Quad Partners worked with a placement agent to make connections with investors in Europe, but Frank declined to identify the name of the firm. Likewise, the firm has made two deals out of Fund IV, but Frank said he could not discuss them because they are not yet closed.

The law firm Kramer Levin Naftalis & Frankel LLP served as counsel to Quad Partners on its fundraising.