Shamrock Capital Advisors is on the market with its fifth fund, an $850 million vehicle focused on investments in media, entertainment and communications companies.
Shamrock Capital Growth Fund V will target lower mid-market companies with enterprise values of between $50 million to $300 million, according to a presentation posted on the website of Rhode Island State Treasury.
Investments can be buyouts, platform investments, recapitalizations and growth capital, taking both minority and control positions. Equity investments will be between $20 million and $100 million per deal.
The firm’s previous funds have performed well.
Fund I was formed in 2001 at $175 million. It invested in eight companies, all of which have been realized. As of December 31, 2020, it has a net internal rate of return of 28 percent and a net distribution to paid-in multiple of 2.2x.
Fund II closed on $311 million in 2006. Its 10 investments have all been realized and have a net IRR of 10 percent and a 1.5x DPI. Fund III closed in 2011 on $400 million and has a net IRR of 99 percent and a 2.5x DPI. It invested in 10 companies, eight of which has been realized.
Fund IV was raised in 2015 on $700 million. It has invested in 11 companies, but none of them have been realized. A memo from consultant Cliffwater said several of Fund IV’s portfolio companies are “still young and recovering from an initial covid-19 downturn.” Shamrock also employs a “conservative valuation policy,” the Cliffwater memo said, and the firm expects the fund to recover performance.
Fund V will charge the industry standard 2 percent management fee, 20 percent carry and 8 percent preferred return, the documents said. Rhode Island committed $30 million to the fund.
Shamrock raised its second capital content fund last year at just over $400 million, as Buyouts reported, and buttressed that fund with an additional $125 million in co-investments for LPs including Rhode Island and Maryland State Retirement and Pension System.
Shamrock was originally founded in 1978 as the family office of Roy E. Disney, nephew of Walt Disney and a longtime executive at his family’s company. After Roy Disney’s death in 2009, Stephen Royer and the team running the fund investments began the process of spinning out the private equity business, finally buying out the last of the Disney family’s interests in 2017.
The firm drew headlines last year when it acquired the master rights to pop star Taylor Swift’s first six albums for over $300 million, according to the New York Times.