Family offices, asset managers, funds of funds, and insurance companies from a range of geographies backed TruArc Partners’ latest flagship fund, helping the middle-market private equity firm secure $1.2 billion in commitments.
TruArc said Tuesday that the final close for TruArc Partners Fund V, together with its parallel vehicles, exceeded the fund’s $1.1 billion target and came in well above the $840.1 million raised for Fund IV, its predecessor.
Co-Managing Partners Ogden Phipps, John Pless, and Alan Mantel said the fund drew a “strong re-up” from existing investors alongside a group of new institutional investors. They said the response reflected confidence in the firm’s team, investment approach, and focus on the specialty manufacturing and business services sectors, and that Fund V would continue TruArc’s work identifying companies whose growth and competitive positions could be strengthened with additional capital.
Guggenheim roots
TruArc is led by three Guggenheim Merchant Banking veterans — Phipps, Pless, and Mantel — who have worked together on the firm’s senior investment team since TruArc’s founding in 2005. Phipps was a founding partner and president of Guggenheim Merchant Banking, the private equity arm of Guggenheim Capital, and began his career in Gleacher Partners’ mergers-and-acquisitions group and Goldman Sachs’ leveraged finance group. He also serves on several TruArc portfolio company boards.
Mantel, who focuses on the firm’s tech-enabled business services investments, was also a managing director in the leveraged finance groups at Credit Suisse and Donaldson, Lufkin & Jenrette earlier in his career. Pless, who leads TruArc’s engineered products and components, industrial technology, and distribution investing, also worked in UBS’ investment banking division earlier in his career.
Supported by an integrated team of 37 investment and operating professionals, TruArc’s senior investment team has led approximately $3.4 billion in private equity investments, including co-investments, across 24 specialty manufacturing and business services platforms. The firm typically targets platform companies with $10 million to $50 million of EBITDA and enterprise values of $100 million to $500 million, writing equity checks of $50 million to $150 million, or up to $200 million inclusive of co-investment.
Its focus spans specialty manufacturing subsectors such as engineered products and components, industrial technology, contract manufacturing, packaging, and B2B consumer, along with business services areas including business process outsourcing, commercial and industrial services, and tech-enabled services. A hallmark of the approach is pursuing add-on acquisitions for platform companies with strong positions in fragmented markets, where a “buy and build” strategy can drive value creation.
TruArc has remained active on the deal front in recent months. It started out the year by acquiring Schill Grounds Management, a Cleveland-based commercial landscaping company, from Argonne Capital Group. In March, it acquired Matrix Adhesives Group, a provider of adhesive and sealant products, from Goldner Hawn.
Advisors
Lazard served as exclusive global placement agent for the fundraise. Davis Polk & Wardwell served as legal counsel.
