Prospect Partners Successfully Closes Oversubscribed Fund V at $225 Million Hard Cap
Chicago – October 1, 2024 – Prospect Partners, a leading pre-lower-middle market private equity firm, today announced the final close of Prospect Partners Fund V (the “Fund”), at its hard cap of $225 million. The oversubscribed Fund hit its hard cap after nine months in the market. The Fund continues Prospect’s strategy of backing entrepreneurs in high potential pre-lower-middle market businesses. As with prior Prospect vehicles, Fund V invests in North American businesses at inflection points in the specialty services, niche manufacturing, and value-add distribution sectors.
Fund V attracted strong interest from a diverse group of new investors, successfully expanding and diversifying Prospect’s investor base. Investors include well known endowments and foundations, family offices, wealth managers, and fund of funds across the United States.
“We are delighted to announce the close of Fund V at its hard cap and we’re deeply grateful for the overwhelming support of our investors, both existing and new,” said Erik Maurer, Partner at Prospect Partners. “Utilizing our disciplined approach, value creation expertise and strong reputation built over more than 25 years, we’ll continue to partner with entrepreneurial, high-potential businesses to help them achieve new levels of success.”
During the fundraise, Prospect completed its first Fund V investment in Extera Building Solutions, a commercial re-roofing business which is the latest example of the firm’s ability to source and execute high-quality deals squarely within its strategy. “We are excited to launch Fund V with a great business like Extera,” said Brett Holcomb, Partner at Prospect Partners. “Extera has several hallmarks of a successful Prospect investment, including an industry-leading management team, an actionable value creation plan and a deep M&A pipeline we are aggressively pursuing.”
The team was aided in the fundraise by Monument Group, a leading independent capital advisory firm. “Congratulations to Prospect on their successful fundraise! The Fund’s success reflects investors’ recognition of the strength of the Prospect team, their long-term commitment to the pre-lower-middle market and the brand they have cultivated over 25 years,” said Bart Molloy, Partner at Monument Group.
“Monument Group was a fantastic partner,” said Brad O’Dell, Partner at Prospect Partners. “Their thoughtful approach allowed us to not only hit our hard cap in a difficult fundraising environment, but to find the right investor base for the long-term.”
Monument Group acted as the exclusive placement agent for Fund V and Latham & Watkins LLP acted as fund counsel.
About Prospect Partners
Founded in 1998, Prospect Partners is an active investor and builder of pre-middle market companies. Prospect focuses on partnering with management teams to complete recapitalizations, build-ups, carve-outs, and generational transitions. The Prospect team brings deep domain expertise, building high potential companies through both operational improvements and acquisitions. For more information, please visit www.prospect-partners.com.
About Monument Group
Monument Group is a global, independent capital advisory and fundraising partner in alternative investments. The firm advises and assists on capital formation and liquidity solutions, including primary fundraising, secondaries, co-investments, fund recapitalizations and other capital solutions for both general and limited partners globally. Established in 1994, Monument Group has assisted its clients in raising over $140 billion across 210 funds and transactions. For more information, please visit www.monumentgroup.com.
About Latham & Watkins
Latham & Watkins delivers innovative solutions to complex legal and business challenges around the world. From a global platform, our lawyers advise clients on market-shaping transactions, high-stakes litigation and trials, and sophisticated regulatory matters. Latham is one of the world’s largest providers of pro bono services, steadfastly supports initiatives designed to advance diversity within the firm and the legal profession, and is committed to exploring and promoting environmental sustainability.
