L.A. has a new, home-grown private equity player looking to tap into the lower middle market.
Angeles Equity Partners announced Tuesday its inaugural $360 million fund. The firm’s initial target was $300 million in capital commitments, but they oversubscribed thanks to a late flurry of investor interest, according to co-founders and managing partners Tim Meyer and Jordan Katz.
“Last summer it became clear we would hit our target,” Meyer said. “We were actually supposed to wrap the fund in October 2016 and we were already past our target then, but we had two large institutional investors from overseas who also wanted in.”
To accommodate, Meyer said they pushed back the closing until this month. Angeles’ first fund has more than 25 percent of its reserves from foreign backers, and received capital contributions from a variety of market segments including private institutional investors, university endowments, and public pension funds. While most investors are confidential, at least one local public pension fund, the Los Angeles City Employees Retirement System, has put money into the new fund.
Meyer and Katz are both Gores Group alums, where they worked together for about a decade on the industrials team that they co-led. The pair split from Gores to form Angeles in 2014 and started raising capital later that year. The new firm will continue to focus on the industrial sector, but at a scale where they think there’s more value for their investors.
“This is very much a continuance of what we did in the past,” Katz said. “We will continue to focus on industrials, but our attention is on the lower-middle market where we think there’s more deal flow and companies that have greater operational opportunities.”
Deals & Dealmakers reporter Henry Meier can be reached at email@example.com. Follow him on Twitter @henry_meier.