PPM America Capital Partners (PPMACP) completed the final close of its eighth co-investment fund, PPM America Private Equity Fund VIII LP, and its parallel Fund VIII with $660 million in commitments.
The close of the 2021 vintage fund marks the largest haul to date for the private equity arm of PPM America (PPM), surpassing the predecessor fund that closed in 2018.
“This closure continues our track record of increasing the size of each subsequent fund,” said Champ Raju, managing partner, head of Private Equity. “We are incredibly grateful to our limited partners who have shown confidence in our ability to create value through manager and asset selection in these uncertain and volatile markets.”
Fund VIII will focus on a diversified pool of co-investments alongside top-tier buyout and growth equity sponsors. The firm expects to undertake about 50 co-investments, ensuring diversification by vintage year, sponsor and sector/industry. Allocation per co-investment will be in the range of $10 million to $25 million.
PPMACP has been a player in the co-investment space since 1996, raising a total of over $4 billion in historical commitments for its eight funds and closing over 250 deals across more than 50 sponsors. The investments primarily target North American buyout and growth opportunities.
The four partners of the nine-person PPMACP investment team have an average of 25 years of investment experience, including 22 years of average firm tenure. PPMACP operates as one integrated team, deploying capital across a primary funds platform and co-investments alongside sponsors. As of Sept. 30, 2023, the firm’s private equity program had $5.76 billion in assets under management, with nearly $11 billion in total historical capital commitments across primary funds and co-investments.
Chicago-based PPM is an institutional asset manager with $68 billion in assets under management as of Sept. 30, 2023. The firm has been expanding its Global Distribution team over past few months, adding Jeff Seaver as its new head of global distribution and Laura Beckner as head of consultant relations in November; Greg Balewicz as a senior managing director in December; and earlier this month, Bob Meikleham as managing director, insurance.