Siguler Guff’s Small Buyout Opportunities Fund IV closes at a better than expected $1.575 billion

on Jan 16, 2020
  • Siguler Guff's Small Buyout Opportunities Fund IV closed at $1.575 billion.
  • Expectations for the firm's fund were capped at $1.25 billion.
  • Siguler Guff has made sizable investments in 43 U.S states.
  • Fund IV is to focus on small and lower middle market companies with an annual revenue of less than $100 million.

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A multi-strategy firm that deals in private equity investments, Siguler Guff, manages assets worth more than $14 billion. On Tuesday, the firm declared that it has successfully raised funds for its Small Buyout Opportunities Fund IV.

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It was expected that Fund IV would close at $1.25 billion. However, it exceeded expectations and collected funds amounting to $1.575 billion in six months. The re-up rate climbed over 90 percent that represented investors’ confidence in the firm.

Siguler Guff Has Made Sizeable Investments In 43 U.S States

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Siguler Guff has invested more than $4 billion in nearly 650 firms located in 43 different states of the U.S. Fund IV is expected to partner up with expert private equity sponsors and make direct investments in companies with annual EBITDA that lies within $2-15 million. The firm’s main focus will be on small and lower middle markets companies operating in the US with annual revenue that does not exceed $100 million and are consistent with high-profit margins. 

Fund IV will primarily be directed at well-established, preferably the companies that are led by the founders. Dominating position in the market is likely to be another criterion for Fund IV’s investments as it will seek to further enhance and expand such businesses. Siguler Guff will rely on value-added improvements and remarkable seller rollover to keep its interests aligned with those of the management team and the seller, that will consequently translate into better financial performance.

The company believes that small and lower middle-market businesses in the US are riddled with structural inefficiencies in the domestic private equity. The strategy only captivated the attention of 10% of the total buyout capital in the U.S that was collected in the past five years. With multiple investments in varying economic cycles, the company has established its image as a successful investor in small and lower middle-market businesses in the States. 

Siguler Guff’s Head For Small Business Investments Comments On The Fund

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According to Siguler Guff’s head for small business investment segment, Kevin Kester, who is currently the portfolio manager and managing director for the fund was recently reported stating:

“We have built a talented team that has worked together for many years. This team has collectively developed a market-leading position within small and lower middle market private equity that generates superior partnerships and investment opportunities. As such, we have already made several compelling Fund IV investments and identified a number of exciting opportunities that align squarely with our proven small buyout investment strategy. We look forward to continuing to create significant value for our investors and, importantly, the great business leaders and companies with which we partner.”

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