Siguler Guff, the New York-based private markets firm, raised $1.97 billion for its fifth small business focused fund.
The Small Buyout Opportunities Fund V was oversubscribed after five months of fundraising, exceeding its $1.65 billion target, which made it the largest small business buyout fund in the $16 billion firm’s history.
Founding Partner of Siguler Guff, Drew Guff described the strategy in a statement as one of the firm’s core strategies.
The investment approach is to allocate to direct investments and in partnership with specialist private equity sponsors. The investment will be in a diverse set of small and lower middle market companies, typically with less than $200 million in annual revenues, less than $20 million of annual EBITDA and consistently high profit margins.
“With over 400,000 companies, representing approximately 96% of all businesses in America, small businesses are the engine that drives the U.S. economy,” added Kevin Kester, managing director and co-portfolio manager of the fund. He also heads Siguler Guff’s small business investment strategy.
Since the strategy’s launch in 2005, Siguler Guff has committed over $6 billion to over 800 companies across the U.S., which nearly 500 realizations. The firm touts its position as one of the most active investors in the small and lower middle market with commitments to over 100 private equity funds and over 200 equity co-investments since its formation.
“Over the past 17 years, we have developed a time-tested strategy for successfully investing in this important market sector through commitments to private equity funds and equity co-investments, alongside small buyout fund managers and deal sponsors,” said Jonathan Wilson, managing director and co-portfolio manager of the fund. “We look forward to collaborating with our partners to identify, invest and build extraordinary businesses.”
