Frontier Capital, a private equity firm providing growth equity to business services companies in the US south-east, south and mid-Atlantic regions, has announced the closing of Frontier F
Frontier Capital, a private equity firm providing growth equity to business services companies in the US south-east, south and mid-Atlantic regions, has announced the closing of Frontier Fund II with USD115m of committed capital. The fund exceeded its USD100m target and is more than two and a half times larger than the firm’s USD45m debut fund.
‘We are pleased with our success in raising Fund II and are proud to be associated with such high calibre institutional investors,’ says managing partner Andrew Lindner. ‘Our ability to attract these investors with our second fund is a testament to the value of our investment strategy and the dedication and talent of our team.’
Frontier Fund II limited partners include Lockheed Martin, Master Retirement Trust, Alpheus Group, Parish Capital, the Duke Endowment, Brooke Private Equity Advisors, Little Hawk Capital Management, Pittco Management and Keystone Private Equity. Investors also include family offices, the firm’s operating partners and former portfolio company chief executives.
The investment team includes managing partners Lindner and Richard Maclean, partner Michael Ramich, special limited partner Michael Pappas, principal Joel Lanik and associate Scott Hoch. Frontier also works closely with a group of operating partners including Ed Crutchfield, former chairman and chief executive of First Union, and Don Telage, former head of Network Solutions.
Frontier Capital targets high growth business services companies that have proven their value in the marketplace and are seeking expansion capital to maximise shareholder value. Frontier will invest to fund growth, acquisitions or shareholder liquidity, typically investing USD5m to USD10m in companies with revenues of between USD5m and USD30m.
‘Growth equity has been receiving a lot of attention recently, and for good reasons,’ Maclean says. ‘We have been focused on this sector since 1999 and our investors have been very pleased with our results. Fund II will allow us to continue building our position as the leading growth equity investor in business services companies in our region.’
Frontier invests in traditional and technology-enabled business services. ‘Our focus on services companies makes us better partners and allows us to bring best practices and value beyond capital to our portfolio,’ Lindner adds.
Frontier Fund II has recently announced investments in Ryla Teleservices, a niche provider of outsourced customer contact solutions, and Conclusive Marketing, a provider of multi-channel direct marketing solutions.
