L Squared Capital Partners has announced the successful final closing of its fourth private equity fund, Fund IV, securing $840 million in commitments. This achievement underscores the firm’s robust growth trajectory and the strong confidence from both returning and new investors. Building on the momentum of fully deploying its $505 million third fund earlier in the year, L Squared Capital Partners now manages over $2 billion in committed capital across four funds since its inception in 2014. The fundraise for Fund IV saw significant backing from existing limited partners, complemented by the addition of several high-caliber institutional investors and large family offices from both domestic and international locations.
To date, L Squared Capital Partners has built an impressive portfolio, encompassing 17 platform investments and nearing its 50th add-on acquisition, representing over $3 billion in enterprise value. The firm’s investment strategy is laser-focused within key sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. Notably, a significant portion of these investments has been in founder-led companies, marking their first experience with institutional capital. Demonstrating its investment acumen, L Squared Capital Partners has already realized successful exits from Funds I and II. Currently, the firm actively manages ten platform investments across its initial three funds and plans to add eight to ten new platform investments within Fund IV. L Squared Capital Partners remains committed to its strategy of making majority investments in expanding companies based in North America, operating within its specialized sectors.
In parallel with its portfolio growth, L Squared Capital Partners has strategically expanded its team, welcoming four talented professionals at the Vice President and Associate levels to bolster its investment capabilities. The firm has also reinforced its operational backbone with the appointment of a Vice President of Finance. Furthermore, L Squared Capital Partners is proud of the continued advancement of its long-standing team members, recognizing their crucial contributions to the firm’s success. Looking ahead, L Squared Capital Partners intends to continue selectively adding top-tier talent to its organization.
The exceptional investor retention rate in Fund IV highlights the strength of L Squared Capital Partners’ relationships with its existing investor base. These strong connections facilitated introductions to new investors who were attracted to L Squared’s distinctive private equity model and proven history of generating value in collaboration with its portfolio company management teams. The firm’s unique structure particularly resonated with new family office investors in Fund IV, alongside institutional investors who value L Squared’s long-term investment perspective, focused on revenue and earnings growth rather than financial engineering.
Rob Healy, Co-Founder and Managing Partner at L Squared Capital Partners, stated, “The substantial growth of our firm, especially amidst a more challenging economic landscape, is a testament to the dedication of the management teams leading our portfolio companies. Their unwavering commitment to excellence is the cornerstone of our achievements, and we extend our sincere gratitude to them. We are also deeply appreciative of the remarkable support from our investors. We are dedicated to diligently investing their capital in growing businesses within our areas of expertise.”
L Squared Capital Partners is led by a seasoned management team including Rob Healy, Jeff Farrero, Sean Barrette, Randall Hunt, and Adam Kimura. Prior to establishing L Squared in 2014, this core team worked together at Chicago Growth Partners, bringing a wealth of experience and a cohesive approach to their current firm.
About L Squared Capital Partners
L Squared Capital Partners, headquartered in Newport Beach, CA, is a private equity firm managing over $2 billion in equity commitments. The firm focuses on long-term investments in leading growth companies within Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. L Squared Capital Partners differentiates itself with an investor base comprising family offices and institutions, enabling a focus on sustainable value creation through revenue and earnings growth, rather than relying on financial engineering or market timing. The principals of L Squared bring over 125 years of combined experience in investing in growing private companies, with a track record of working together for over 15 years.
For more information, please visit www.LSquaredCap.com.
Vedder Price, PC served as legal counsel, and Eaton Partners, a Stifel Company, acted as the placement agent for L Squared Capital Partners during this fundraise.
This announcement is for informational purposes only and not intended as investment advice or a solicitation to invest. Investment in private equity involves risk and is suitable only for qualified investors.
Contact
Liz Hunt
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