Warren Equity Partners Manager (WEP) has held the final close of its private equity investment fund, Warren Equity Partners Fund II, and Warren Equity Partners Fund II-A (collectively WEP II) at its USD310 million hard cap.
WEP II held its first close in March 2018 and concluded marketing to new investors in September 2018. The final close of WEP II was held in December 2018. The oversubscribed fund includes commitments from a diverse group of new and returning investors including university endowments, pension funds, fund of funds, private foundations and family offices.
Founded in mid-2015 by Steven Wacaster, Scott Bruckmann, and Henrik Dahlback, WEP invests in the form of buyouts and recapitalisations in established North American companies in the industrial and business services sectors, with a particular emphasis on companies that provide solutions to maintain, operate, and upgrade infrastructure. The firm has completed 19 transactions, including 8 platform companies, since inception.
“We are grateful for the strong support we received from our investor base during the raise of WEP II,” says Steven Wacaster, Co-Founder and Managing Partner. “Our experienced team and ability to execute on a focused investment strategy attracted a diverse group of high-quality investors. We look forward to continuing our partnerships with management teams to build great companies in WEP II.”
The firm believes its targeted sectors will continue to perform well over the next decade and beyond given years of underinvestment in infrastructure; an ageing asset base in the utility and building environment; continued growth in the utilisation of core assets, such as utility distribution systems, airports, highways, and ports; growing investments in North American energy/electrical production and transportation; and increasing technology utilisation and data management. WEP targets companies with under USD150 million of total enterprise value, ranging from smaller add-on acquisitions to larger platform investments.
“We have built a strong reputation for being a value-added partner to management teams of lower middle market companies,” says Scott Bruckmann, Co-Founder and Partner. “WEP II will continue to invest in businesses where we have an inherent understanding of the underlying markets served and can leverage our experience and resources to drive value for our investors and portfolio companies.”
WEP targets regional companies in fragmented end markets that have competitive differentiation and can scale through a combination of organic growth and add-on acquisitions. WEP often provides additional follow-on capital to support these growth initiatives. In addition, WEP utilises its in-house operational team to drive improvements and prepare companies for growth.
“At WEP, we leverage our network of industry advisors to identify attractive targets and utilise our in-house operations team to establish strategic goals and performance metrics at our portfolio companies,” says Henrik Dahlback, Co-Founder, Partner and COO.
WEP II has completed four platform investments to date, accounting for over one-third of its committed capital. In April 2018, the Firm made WEP II’s first investment in Meridian Waste, a vertically integrated provider of waste hauling services. In May 2018, WEP II acquired a majority interest in Superior Industrial Maintenance Company, a provider of corrosion protection services for mission critical assets in power plants, chemical plants, commercial aviation facilities, military bases, food and beverage processing facilities, and water treatment facilities. Most recently, WEP II acquired StormTrap, a provider of stormwater management solutions, and M&D Distributors, a leading aftermarket distributor of mission critical diesel engine parts and components.
Eaton Partners served as the exclusive placement agent for WEP II, and Kirkland & Ellis LLP provided legal counsel.
