Pamlico Capital Closes $650 Million Pamlico Capital III, L.P.
First Fund as an Independent Private Equity Firm Oversubscribed
Pamlico Capital (“Pamlico”) today announced the final close of Pamlico Capital III, L.P. (“the Fund”), a private equity fund with total commitments at the upwardly revised hard cap of $650 million.
Pamlico Capital III is the firm’s first fund as a fully independent firm, and with an initial target of $500 million, was significantly oversubscribed. The Fund’s Limited Partners, which include all of the outside institutional investors from the predecessor fund, comprise an array of leading funds of funds, corporate and foreign pension funds, endowments, foundations and family offices. Leading institutional investors in Pamlico Capital III include AlpInvest Partners, Constitution Capital Partners, GE Pension Trust, HarbourVest Partners, affiliates of Hartford Investment Management Company (HIMCO), HOOPP Capital Partners (the private equity arm of the Healthcare of Ontario Pension Plan), John Hancock Financial Services, SCM Strategic Capital Management, AG and TIAA-CREF.
“Not only were we oversubscribed, but we raised the capital in a relatively short period of time, a testament to the quality of our team, our strong and consistent record and our sound investment strategy,” said Pamlico Managing Partner Scott Perper. “As with previous funds, Pamlico’s partners are committing significant capital to the Fund, firmly aligning us with the interests of our Limited Partners. The close of our first fund as an independent firm is a notable milestone for Pamlico, and I’d like to thank our Limited Partners, especially all our returning investors, for their commitment to the Fund and their trust in our firm.”
Pamlico seeks to invest in control-oriented buyouts, primarily in lower middle market growth companies in the business and technology services, communications and healthcare sectors in North America. The firm targets businesses with untapped potential that can benefit from transformational capital to accelerate growth and increase profitability through improved sales strategies, acquisitions, expanded target markets and strengthened human capital. Pamlico’s investment strategy centers on using the team’s deep industry expertise and transactional experience to identify niche sub-sectors within its target industries where exceptional growth and/or consolidation opportunities exist, and then taking a very active role partnering with management teams to build value for shareholders. As with Pamlico’s previous funds, Pamlico Capital III will seek equity investments of $25 million to $75 million in companies with total enterprise values of between $50 million and $250 million.
"Collectively our team has decades of experience generating significant returns through partnering with talented managers to build great companies,” said Pamlico Managing Partner Eric Eubank. "We believe there is no substitute for the proven experience provided by a firm whose team has been investing together, in the same sectors, through numerous and varying economic cycles. As we invest Pamlico Capital III, we will pursue the same strategy we have successfully executed since inception, helping accelerate the growth of lower middle market businesses through active ownership."
“We have been investors with Pamlico since 2007, and are pleased to once again invest with the firm,” said Marek Herchel, Partner, AlpInvest Partners. “As one of the world’s largest private equity managers, AlpInvest seeks to place capital with firms that have demonstrated consistently strong performance. We have long been impressed with Pamlico’s successful investment track record and the continuity of its management team, and anticipate this will continue to be a highly rewarding and mutually beneficial relationship.”
Pamlico originated in 1988 as the private equity arm of First Union Corporation. The firm invested capital on behalf of First Union, its successors, and Pamlico’s investment professionals through 2007, when Pamlico raised outside capital for the first time. The Pamlico team formed Pamlico Capital in 2010 when the firm completed its spin out and became fully independent.
UBS Securities LLC acted as placement agent for Pamlico. Robinson, Bradshaw & Hinson, P.A. provided legal counsel.
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of approximately $4 billion. For additional information, please visit www.pamlicocapital.com.