OpenGate closes second institutional fund with USD585m in commitments

Private equity firm OpenGate Capital has closed its second institutional fund, OpenGate Capital Partners II & II-A, at approximately USD585 million, thirty per cent above the fund’s initial target of USD450 million.

The new fund supports OpenGate’s on-going strategy to invest in lower middle market businesses throughout North America and Europe across four focus industries: Industrials, Technology, Consumer and Business Services.

Andrew Nikou, Founder and CEO, says, “We are extremely honoured to have the trust and confidence from our existing investors who re-committed with us, and excited to partner with our new investors who represent some of the most sophisticated, institutional investors. The entire team at OpenGate is looking forward to continuing to work with all of our Limited Partners and investing in and optimising the businesses in our two portfolios. Our deepest appreciation also goes out to UBS and Kirkland and Ellis who were once again our trusted advisors and partners in bringing Fund II over the finish line.”

OpenGate’s second institutional fund comprises 23 investors from seven countries, including pensions, asset managers, consultants, fund of funds, wealth managers, and insurance companies from the US, Europe and the Middle East.

UBS Securities, LLC served as the private placement agent, and Kirkland & Ellis, served as legal counsel in connection with the fund raise.

OpenGate has already completed six platform investments this year through its second fund including Fiven, SMAC, Sargent & Greenleaf, Duraco, InRule Technologies and CoreMedia.

OpenGate’s first fund, a 2015 vintage, completed nine platform investments including Power Partners, Bois & Matériaux, Energi Fenestration Solutions, Alfatherm, EverZinc, Hufcor, Mersive Technologies, Jotul/Ravelli, and Fichet Security Solutions.