Shamrock Capital targets debut small-cap fund, next flagship

The manager specializes in lower mid-market media and communication companies.

Shamrock Capital is targeting $1.4 billion for its latest two private equity funds, both of which focus on investments in media, entertainment and communication companies.

LP interest in specialized funds has grown over time as allocators look to place capital with managers with expertise in specific industries or strategies.

Shamrock Capital set a $1.1 billion target for its sixth flagship growth fund, which intends to invest in deals between $45 million and $300 million in size. The LA-based manager is also raising $300 million for Clover Fund I, which will write check sizes between $20 million and $45 million.

Information about Shamrock’s funds was made available in the Rhode Island State Investment Commission’s report for the month of April. The system approved up to $21 million in commitments for Fund VI and $10.5 million in commitments to Clover I.

Shamrock Capital created Clover Fund I to make investments considered too small for Fund VI, according to a memo from Cliffwater, which serves as Rhode Island’s private equity consultant.

Transactions from both funds will consist of leveraged buyouts, growth equity and recapitalizations, the memo said.

 

Recent Fund Performance

  • Fund V (2021 vintage) Net IRR N/A Net TVPI 0.90x Net DPI N/A
  • Fund IV (2016 vintage) Net IRR 15.26% Net TVPI 1.65x Net DPI 0.62x

Source: Buyouts’ data as of June 30, 2023, citing various public pension systems. Subscribers can view here.

Both funds will charge a 2 percent management fee on both committed capital for the first five-year investment period and for invested capital for the remainder of the 10-year term, Cliffwater said.

According to Cliffwater, both funds will also charge a 20 percent carried interest rate. The preferred return rate for both funds is 8 percent.

Shamrock Capital’s investments range across advertising, live events management, marketing services, talent management and related industries, according to a presentation from the manager.

Shamrock president and partner Steve Royer sits on the investment teams for both funds.

The co-heads of the Clover team are Sam Halls and Ryan Smiley, according to a presentation from the manager.

Smiley worked at RLH Equity Partners for more than 15 years before returning to Shamrock in 2023, the presentation said. Halls worked at Shamrock since 2016, having previously worked at Silver Lake.

Shamrock recently invested in non-profit higher education marketing strategy provider Carnegie Dartlet Holdings, according to a press release. Shamrock’s previous exits included investments in the Harlem Globetrotters and FanDuel, its presentation said

Shamrock Capital’s first growth fund was launched in 2001 after being spun out of the family office of Roy E. Disney, according to Cliffwater’s memo.

The manager has raised $2.6 billion across its previous five private equity funds, Cliffwater said.

Shamrock Capital did not respond to a request seeking comment by press time.