TZP Group $565M for Oversubscribed Third Fund

Apr 13 2017 | 10:55pm ET

TZP Group has raised $565 million in capital commitments for its third buyout fund, handily beating its $450 million target. 

The new fund, named TZP Capital Partners III, was heavily oversubscribed and completed its fundraise in less than three months, the company said in a statement. Fund III’s limited partners consist of existing prior TZP funds’ investors, as well as new investors representing leading sovereign wealth funds, pension plans, endowments, fund of funds and family offices.

As with its predecessors, Fund III will focus on control investments in business and consumer services companies with greater than $10 million in EBITDA, TZP said. The company is focused on business and consumer services verticals where the firm’s investment professionals have significant operating and transaction experience, such as franchising, outsourced business and IT services, marketing and media services, travel and hospitality services, consumer, real estate services and specialty finance.

TZP raised $370 million for its second Capital Partners fund in August 2013, and $177 million in June 2015 for its TZP Growth Partners I fund. 

“We are grateful for the tremendous level of support we received from our TZP II investors and are excited to welcome a prestigious group of new investors in TZP III,” stated Sam Katz, Managing Partner and Co-Founder. “The investor base recognized the quality and success of our team and appreciated its commitment to continuous improvement of our well designed investment process. We look forward to continuing to build upon the leading brand we have established in the lower middle market on behalf of the investors in TZP III.”

Kirkland & Ellis LLP served as legal counsel in the formation of the fund, and no placement agent was used. 

Founded in 2007 and headquartered in New York, TZP has raised $1.3 billion since inception across its family of funds. The company seeks to invest primarily in closely-held, private companies where the owners desire to retain a significant stake and partner with an investor with complementary operating and financial skills to accelerate growth, increase profitability, and maximize the value of their retained stake.

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