Gores Group Debuts Fund to Target Smaller DealsWednesday, March 7, 2012
The Gores Group on Wednesday said it had closed fundraising for its fourth private equity fund. The new $300 million fund will target lower middle-market businesses.
The Westwood investment firm headed by billionaire financier Alec Gores said that the fund, Gores Small Capitalization Partners L.P., will pursue companies below the target size of its $2 billion flagship fund, Gores Capital Partners III L.P. Gores III also will co-invest $100 million alongside the new fund to bolster Gores Small Cap’s investment power.
The company did not define what it considered lower middle-market businesses.
“We believe there are tremendous opportunities available at the lower end of the market that can benefit from the same operationally-focused investment strategy that we have employed over our 25-year history,” said Gores, the firm’s chairman, in a statement. “We appreciate the continued strong support of our existing investors and look forward to a long-term partnership with the new investors who have joined us in this fund.”
Gores Small Cap Partners will be led by managing directors Ashley Abdo, Victor C. Otley, Catherine Scanlon and Michael Nold.