Housatonic Partners, a private equity investment firm, announced today that it has closed a $250 million investment fund, bringing total capital under management to more than $650 million. The new fund, Housatonic Equity Investors IV, is the seventh since the firm’s inception in 1994 and was oversubscribed at its first closing.
Housatonic focuses on companies with enduring growth and profitability in the recurring services, media and communications industries. In 13 years, Housatonic has led buyout or recapitalization transactions in more than 50 small to mid-sized companies in these industries, an investment strategy the firm will continue. The firm anticipates average equity commitments from the new fund of $10 to $20 million.
“Through strong analytics, proprietary sourcing of opportunities, an exceptionally deep and experienced team, and a long-term investment horizon, Housatonic has demonstrated its ability to help investors capitalize on the underserved middle-market for private equity investments in its targeted industries,” said Karl Beinkampen, executive director of Morgan Stanley Alternative Investments. “We invested in this new fund because we believe Housatonic will help us achieve our goal of superior long-term capital appreciation in the small-cap buyout segment of the private equity market.”
In the past 24 months, Housatonic has realized 16 liquidity events, including the sale of 13 companies and three re-financings. In May 2007, Housatonic portfolio company ArchivesOne Inc., the third largest provider of records and information management services in the United States, was acquired by Iron Mountain Information Management Inc., a wholly owned subsidiary of Iron Mountain Inc. (NYSE:IRM). Earlier in the year, Housatonic portfolio company ServiceSource, a global provider of outsourced support and maintenance services, received $66 million in capital from General Atlantic LLC for a minority stake in the company.
“The closing of our new fund in a short period of time validates our track record and the appeal of our strategy,” said Will Thorndike, a founding general partner. “We are gratified and energized by the continued support of our existing limited partners and the new commitments of our first-time investors. Our work now is to find companies that fit our investment focus and that can use our capital and expertise to grow in market position and value.”
Limited partners in the new fund are a diverse group of foreign and domestic investors, including major financial institutions, prominent foundations and endowments, family offices and high net worth individuals, many of whom are general partners in established private equity firms or faculty from leading business schools.
Housatonic Partners is a private equity investment firm founded in 1994 with more than $650 million in capital under management. We invest in growing, profitable companies in the recurring services, media and communications industries. We have partnered with exceptional management teams in more than fifty small to mid-sized companies in these industries over the last thirteen years.