Insight

Sentinel Capital collects $5.2bn across two new funds

The mid-market private equity firm has closed its seventh fund at $4.3 billion and $835 million for its second structured capital fund.

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  • Sentinel Capital Partners VII will focus on acquiring midmarket companies with up to $65 million of EBITDA
  • Sentinel Junior Capital II will provide flexible credit and equity solutions
  • The funds’ LPs include college and university endowments, foundations, state and government retirement systems, corporate pension plans, insurance companies and sovereign wealth funds

Sentinel Capital Partners has raised $5.2 billion across two funds. The mid-market private equity firm has closed its seventh fund at $4.3 billion and $835 million for its second structured capital fund.

“We are delighted to finalize another successful fundraise with strong endorsements of our strategy from existing investors and select new global LPs,” said David S. Lobel, founder and managing partner of Sentinel in a statement. “We are incredibly pleased with the support we have received from an outstanding group of LPs during an extremely challenging period for investors. Strong investor demand resulted in Sentinel VII securing commitments above its hard cap.”

Sentinel Capital Partners VII will focus on acquiring mid-market companies with up to $65 million of EBITDA.

Sentinel Junior Capital II will provide flexible credit and equity solutions to Sentinel’s own portfolio companies as well as other closely held businesses and private equity–backed companies.

The funds’ investors include college and university endowments, foundations, state and government retirement systems, corporate pension plans, insurance companies, sovereign wealth funds, investment advisors, and Taft-Hartley plans based in the U.S., Europe, Japan, China, Australia, and the Middle East.

The new funds follow two predecessors that Sentinel raised in 2018: Sentinel Capital Partners VI, L.P. with $2.15 billion of committed capital, and Sentinel Junior Capital I, L.P., Sentinel’s first structured capital solutions fund, with $460 million of committed capital.

Kirkland & Ellis LLP and Credit Suisse Securities (USA) LLC represented Sentinel and supported the fundraising.

Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses.