OpenGate Capital, a private equity firm based in Century City, has closed its latest fund at approximately $585 million.
The OpenGate Capital Partners II & II-A LP is the firm’s second institutional fund. It’s designed to invest in lower-middle market companies across North America and Europe. The final closing amount was approximately 30% higher than the firm’s initial target of $450 million.
On Nov. 5, the day after the fund closed, OpenGate announced that it had acquired German content management and digital experiences platform CoreMedia AG. The purchase, the sixth using the firm’s latest fund, involved a majority interest buyout of CoreMedia from Deutsche Telekom Capital Partners and a group of private investors.
Terms of the transaction were not disclosed.
Other companies acquired through the fund since May of this year include the Fiven Company, SMAC, Sargent & Greenleaf, Duraco and InRule Technology. All six acquisitions are platform investments, according to OpenGate, with no overlap on its existing businesses in terms of customers or operations.
CoreMedia offers solutions designed to help businesses strengthen their digital presence with clients spanning industries from luxury goods to telecom.
According to OpenGate, new funding from the firm will be used to help CoreMedia build improved offerings based on artificial intelligence, including automation of repetitive tasks and development of more personalized shopping experiences.
“This partnership with OpenGate will accelerate our efforts to help companies build and manage truly iconic brands,” CoreMedia Chief Executive and co-founder Soeren Stamer said in a statement.
OpenGate’s second institutional fund attracted 23 investors from seven different countries, including pensions, insurance companies, wealth managers and consultants.
The firm’s first institutional fund closed in 2015 and featured nine platform investments, including Power Partners, Bois & Matériaux, Energi Fenestration Solutions, Alfatherm, EverZinc, Hufcor, Mersive Technologies, Jotul/Ravelli, and Fichet Security Solutions.
Banking and finance reporter James B. Cutchin can be reached at [email protected] or (323) 556-8332. Follow him on Twitter @jamesbcutchin.
