OceanSound Partners, a New York-based private equity firm renowned for its strategic investments in technology and technology-enabled service companies, has announced the successful final closing of its second fund, OceanSound Partners Fund II, LP. The Fund impressively secured $1.49 billion in capital commitments, demonstrating significant investor confidence in the firm’s focused approach and proven track record. When combined with affiliated co-investment vehicles and a single-asset continuation fund finalized in April 2024, OceanSound has amassed over $2.15 billion of cumulative committed capital associated with Fund II.
This latest fundraise underscores the strong appeal of OceanSound’s investment strategy within the private equity landscape. The firm garnered support from a diverse and prestigious group of limited partners, encompassing leading pension plans, endowments, foundations, family offices, institutional consultants, asset management firms, and insurance companies. Notably, the Fund was oversubscribed, and almost all investors from OceanSound’s inaugural fund returned to participate in Fund II, highlighting their satisfaction and belief in the firm’s capabilities.
Fund II’s final close reached its revised hard cap, significantly surpassing its initial hard cap of $1.3 billion, its $1.0 billion target, and the $780 million raised for OceanSound’s inaugural fund, which closed in February 2022. The first fund, also oversubscribed with an initial target of $550 million, is now substantially invested in platform companies, with recycled capital of approximately $45 million and remaining capital allocated for follow-on growth investments. This rapid growth and investor enthusiasm reflect OceanSound Partners’ compelling value proposition and effective investment strategy.
OceanSound Partners distinguishes itself by focusing on middle-market companies operating within government and highly regulated enterprise end markets. The firm’s specialized expertise in these sectors enables them to identify and cultivate significant growth and superior performance within their portfolio companies. OceanSound employs a structured, engineering-like approach to value creation, centered on a “build, improve, and grow” process. This methodology incorporates sound strategic initiatives and operational best practices to accelerate revenue growth and enhance margins within their investments. Typically, OceanSound invests between $75 million and $300 million, taking controlling-ownership positions in companies with enterprise values ranging from $150 million to $750 million.
Currently managing over $3.7 billion in Regulatory Assets Under Management, OceanSound has made nine platform investments, which have in turn completed 38 add-on acquisitions. The collective portfolio of OceanSound Partners generates over $3.7 billion in revenue and employs more than 12,000 individuals, illustrating the significant scale and impact of their investment activities.
Joe Benavides, Managing Partner of OceanSound Partners, commented on the successful fund closing, stating, “The successful closing of our second fund can be attributed to OceanSound’s differentiated, all-weather investment strategy together with proven execution which has included capital returned to investors from our inaugural fund. Since starting the firm shortly before the COVID-19 pandemic, we have raised two funds, closed a continuation fund, returned the majority of our inaugural fund’s capital to our investors, and closed nearly 50 transactions in challenging markets, especially for newer firms. We could not be more pleased with all we have accomplished and are confident in our execution as we build a scalable private equity business. We are extremely grateful for the support of our investors, who include some of the most respected institutional private equity investors. Their support underscores our ability to identify attractive platform company investments which we can transform into more strategically valuable businesses due to our proprietary perspectives and standardized ownership processes.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to OceanSound Partners throughout the fund closing process.
About OceanSound Partners
OceanSound Partners is a New York-based private equity firm specializing in control investments within technology and technology-enabled services companies that serve government and highly regulated enterprise end markets. OceanSound fosters a collaborative partnership approach, working closely with founders, entrepreneurs, and executives of middle-market businesses to drive transformative growth and value creation. For further details, please visit www.oceansoundpartners.com.
Contacts
Media Contact: Alex Goss Stanton [email protected] (203) 260-3985
