Odyssey Investment Partners is marketing a $1bn single-asset continuation fund to prolong its ownership of portfolio company Industrial Electric Manufacturing (IEM), according to a report by Bloomberg citing sources familiar with the matter.
Odyssey initially invested in IEM in 2022 through its Fund VI, which closed in 2020 with $3.25bn in commitments. The New York-based firm, with a 25-year track record, focuses on majority stakes in middle-market industrial and business services companies.
IEM, headquartered in Silicon Valley, specialises in advanced electrical power distribution systems and counts tech giants such as Apple and Hewlett-Packard among its clients.
The final size of the continuation vehicle will depend on unfunded commitments rolled from Fund VI alongside new capital from incoming investors. The vehicle aims to provide liquidity to existing backers while maintaining exposure to a business that has appreciated in value – Fund VI has generated a 16% IRR through March, according to an Ohio public pension investor.
As deal activity cools, continuation funds and secondary stake sales have surged as private equity firms seek flexible capital solutions and navigate increasing LP demands for distributions. Secondary market transactions hit a record $102bn in H1 2025, per Evercore data.
Lazard is advising Odyssey on the fundraising process.
