Mountaingate Capital (Mountaingate), a Denver-based private equity firm, has closed its first fund (Fund I) at its hard cap with USD395 million in capital commitments.
Fund I closed above its target of USD300 million, was significantly oversubscribed and attracted a diverse investor base of leading institutional investors.
“We are pleased to announce the successful closing of Fund I,” says Bruce Rogers, co-founder and managing director of Mountaingate Capital. “Mountaingate was formed to invest in and build lower middle market companies through a customer-focused, organic and add-on acquisition growth strategy. We appreciate the support of our investors and look forward to providing our management partners with the resources they need to grow their businesses and achieve their vision as industry leaders.”
Fund I will continue to invest in new platform companies and support their efforts with strategic add-on acquisitions in four target sectors: marketing services, business/industrial services, specialty distribution and specialty manufacturing, including medical devices. Mountaingate’s Fund I has seen strong early momentum with three platform investments already in the portfolio. W2O Group, a San Francisco-based marketing and communications firm serving healthcare and technology clients with industry-leading proprietary analytics and insights; HS2 Solutions, a Chicago-based digital brand experience agency with expertise across leading enterprise marketing platforms; and Elite SEM, a New York-based performance driven digital marketing firm specialising in e-commerce and consumer brands. Mountaingate has already formalised strategic plans for these platforms, supported several management additions and closed three strategic add-on acquisitions.
Colton King, co-founder and managing director of Mountaingate says, “We are delighted by the early advancement and value being created within our first three platform companies. Our partnerships with Jim Weiss of W2O Group, Phil Hollyer and Keith Schwartz of HS2 Solutions, and Ben Kirshner of Elite SEM are illustrative of the types of entrepreneurial leaders and organisations we look to invest in and support their efforts to aggressively grow and build industry-leading companies.”
“Our partnership strategy, coupled with our proven customer-centric buy-and-build approach for add-on acquisitions and side-by-side management equity ownership, has consistently created more valuable enterprises and ensures strong alignment of interests and goals,” says Bennett Thompson, co-founder and managing director of Mountaingate.