New York firm Sentinel Capital Partners held the coincident closings of two funds: Sentinel Capital Partners VII at $4.3 billion and Sentinel Junior Capital II at $835 million.
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.
Both funds are focused on investing in midmarket companies. Historically the ss billion firm has put capital to work in aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare and industrial businesses. Centered on businesses with EBITDA of up to $65 million, Sentinel’s investment structures span buyouts, recapitalizations, corporate divestitures and going-private transactions.
“We are incredibly pleased wit the support we have received from an outstanding group of LPs during an extremely challenging period for investors,” said David Lobel, founder and managing partner of Sentinel. “Strong investor demand resulted in Sentinel VII securing commitments above its hard cap.”
Institutional investors in the funds included the Pennsylvania State Employees Retirement System.
Sentinel’s seventh equity fund continues the firm’s same investment strategy. In addition to platform acquisitions, Sentinel will continue to pursue ‘tuck-in’ acquisitions and transformational add-on acquisitions as important dimensions of its investment strategy.
John McCormack, Sentinel’s co-founder, added, “As Sentinel matures we continue to invest in our people and the process that enhance our capabilities. Besides our core investment capabilities, we are actively investing in DE&I, ESG, investor relations, forensic accounting and human capital initiatives.”
The structured capital fund will offer credit and equity solutions including senior and junior debt, preferred equity, and other forms of structured capital.
According to the firm’s latest ADV on file with the U.S. Securities and Exchange Commission Sentinel had approximately $5.2 billion in assets under management as of Dec. 31, 2021.