Sentinel Capital Partners, a prominent private equity firm dedicated to investing in the midmarket, has announced the successful closing of two new funds, reinforcing its commitment to this sector. The firm finalized Sentinel Capital Partners VII, LP at $4.3 billion and Sentinel Junior Capital II, LP at $835 million simultaneously, culminating in a total capital raise of $5.2 billion. This successful fundraise underscores strong investor confidence in Sentinel Capital Partners’ strategy and its expertise in flexible capital solutions.
David S. Lobel, founder and Managing Partner of Sentinel Capital Partners, expressed his satisfaction with the outcome, stating, “We are delighted to finalize another successful fundraise with strong endorsements of our strategy from existing investors and select new global LPs. We are incredibly pleased with the support we have received from an outstanding group of LPs during an extremely challenging period for investors. Strong investor demand resulted in Sentinel VII securing commitments above its hard cap.” This robust investor interest highlights the appeal of Sentinel Capital Partners’ focused approach and consistent performance.
Through its seventh equity fund, Sentinel Capital Partners will continue its well-established investment strategy. This strategy centers on partnering with talented management teams to acquire midmarket companies. These target companies typically possess up to $65 million of EBITDA and demonstrate solid business fundamentals within industries where Sentinel Capital Partners has cultivated deep expertise. These sectors include aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Beyond platform acquisitions, Sentinel Capital Partners will also actively pursue tuck-in and transformational add-on acquisitions, recognizing these as critical components of its growth-oriented investment strategy.
John F. McCormack, co-founder of Sentinel Capital Partners, emphasized the firm’s long-term track record and commitment to improvement. “Over the course of 27 years, Sentinel has established a consistent record of growing and improving midmarket businesses by tackling financial and operational complexity while embracing partnerships with management teams, an approach that has proven appealing to corporate and institutional sellers, business owners, and company executives,” said McCormack. He further added, “As Sentinel matures, we continue to invest in our people and the processes 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.” This continuous investment in its infrastructure and expertise positions Sentinel Capital Partners for sustained success in the competitive private equity landscape.
Sentinel Capital Partners’ second structured capital solutions fund, Sentinel Junior Capital II, LP, will offer flexible credit and equity solutions. These solutions encompass senior and junior debt, preferred equity, and other structured capital forms. These versatile capital offerings will be available to Sentinel’s portfolio companies, as well as other closely held businesses and private equity-backed companies. This initiative builds upon Sentinel Capital Partners’ established reputation as a collaborative, value-added, and solutions-oriented investment partner. The Junior Capital fund expands the firm’s capabilities to support a wider range of businesses with tailored financial solutions.
The investor base in Sentinel Capital Partners’ new funds is diverse and global, including college and university endowments, foundations, state and government retirement systems, corporate pension plans, insurance companies, sovereign wealth funds, investment advisors, and Taft-Hartley plans. These investors are based in the United States, Europe, Japan, China, Australia, and the Middle East, showcasing the international appeal of Sentinel Capital Partners’ investment strategy. The successful fundraising follows the firm’s previous fundraisings in 2018, Sentinel Capital Partners VI, L.P. with $2.15 billion, and Sentinel Junior Capital I, L.P., with $460 million, demonstrating a consistent growth trajectory.
Kirkland & Ellis LLP provided legal counsel for the fundraising, and the Private Fund Group of Credit Suisse Securities (USA) LLC served as the placement agent.
About Sentinel Capital Partners
Sentinel Capital Partners is a private equity firm that specializes in buying and building midmarket businesses in partnership with management. The firm targets investments in established businesses within the aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial sectors across the United States and Canada. Sentinel Capital Partners focuses on management buyouts, recapitalizations, corporate divestitures, and going-private transactions of companies with EBITDA up to $65 million. Additionally, Sentinel Capital Partners invests in special situations, including structured capital solutions, balance sheet restructurings, and operational turnarounds.
For further information about Sentinel Capital Partners, please visit www.sentinelpartners.com.
Contact:
Roland Tomforde
Broadgate Consultants
212-232-2356
SOURCE Sentinel Capital Partners
