Siguler Guff, a multi-strategy private equity investment firm with over USD14 billion of assets under management, announced today that it has completed fundraising for its Small Buyout Opportunities Fund IV. Fund IV, which was oversubscribed, closed at USD1.575 billion after six months of fundraising, exceeding its USD1.25 billion target. The Fund’s re-up rate was over 90 per cent, a significant vote of confidence from existing investors.
Since the strategy’s inception in 2006, Siguler Guff has committed over USD4 billion to approximately 650 companies in 43 US states and one US territory. Through direct investments and by partnering with specialist private equity sponsors, Fund IV will focus on investing in a diverse set of small and lower middle market US companies typically with USD2-15 million of annual EBITDA, less than USD100 million of annual revenue and consistently high profit margins. As in the prior funds, Fund IV will target established, often founder-led companies with niche market-leading positions where value can be created through building and growing the business. Siguler Guff seeks strong alignment of interests with the seller and management team through significant seller rollover and value-added improvements that drive superior financial and investment performance.
With approximately 350,000 small and lower middle market businesses in the US, Siguler Guff believes that the market segment exhibits one of the greatest structural inefficiencies within domestic private equity, as the opportunity set attracted only 10 per cent of total US buyout capital raised in the last five years. Investing across multiple distinct economic cycles, Siguler Guff has proven itself to be one of the largest and most successful investors in the US small and lower middle market space.
Kevin Kester, Managing Director and Portfolio Manager of the Fund, and head of Siguler Guff’s small business investment unit, says: “We have built a talented team that has worked together for many years. This team has collectively developed a market-leading position within small and lower middle market private equity that generates superior partnerships and investment opportunities. As such, we have already made several compelling Fund IV investments and identified a number of exciting opportunities that align squarely with our proven small buyout investment strategy. We look forward to continuing to create significant value for our investors and, importantly, the great business leaders and companies with which we partner.”
Drew Guff, Managing Director and Founding Partner of Siguler Guff, adds: “We are pleased to have received such strong support from our limited partners for Fund IV and look forward to the continued success of our small business platform. It is an exciting time for smaller companies in the US economy, and Siguler Guff is optimally positioned to support their growth and strategic expansion.”
