Firms & Funds

Warren Equity closes first institutional fund on $310 mln hard cap

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Warren Equity Partners, private equity
Photo of Scott Bruckmann sourced from Warren Equity's website
  • Raised first fund with several wealthy families in 2015
  • Two partners worked at Pegasus Capital Advisors
  • Fund II already made four platform investments

Warren Equity Partners, formed by several executives from Pegasus Capital Advisors, closed its sophomore fund, its first institutional pool, on its $310 million hard cap, the firm said.

Several first-time and early fund managers have been able to raise capital in the strong fundraising markets in recent years. Other emerging managers that have found success raising early funds include Soundcore Capital Partners, which closed its first institutional fund on $350 million last year; and Nonantum Capital Partners, a Charlesbank spinout that closed its debut fund on $385 million last year.

Warren Equity Partners Fund II held a first close in March 2018 and stopped fundraising in December. The pool initially targeted $225 million.

Steven Wacaster, sourced from Warren Equity website

LPs include endowments, pension funds, funds of funds, foundations and family offices, the firm said.

Eaton Partners was placement agent on the fundraising. Warren Equity closed its debut in 2015 on $100 million, backed by several wealthy families. Fund I made four platform investments.

Warren Equity invests in the industrial, infrastructure and business services sectors, in the North American small and middle market. The firm particular emphasizes companies that provide services to maintain, operate and upgrade infrastructure.

Warren Equity “believes its targeted sectors will continue to perform well over the next decade and beyond given years of underinvestment in infrastructure,” the firm said in a statement.  

Henrik Dahlback, sourced from Warren Equity website

Fund II has made four platform acquisitions, accounting for a third of its committed capital, sources said. Investments include Meridian Waste, which provides waste-hauling services; Superior Industrial Maintenance, which provides corrosion protection services for assets in power plants, chemical plants, water-treatment plants and other facilities; StormTrap, which provides stormwater management services; and M&D Distributors, which distributes aftermarket diesel engine parts.

Ex-Pegasus Capital executives Steven Wacaster and Scott Bruckmann, along with ex-investment banker Henrik Dahlback, formed Warren.

Dahlback, the firm’s chief operating officer, previously worked at Royal Bank of Canada, Merrill Lynch and Morgan Stanley.

Action Item: Check out Warren Equity’s Form ADV here: https://bit.ly/2TMqPbh