Towerbrook wraps up double fundraise on $5.3bn hard-cap

Oscar Geen
25 June 2018

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Towerbrook Capital Partners has held first and final closes for its majority and minority buyout funds on $4.25bn and $1.05bn respectively.

Towerbrook V and Towerbrook Structured Opportunities II (TSO II) surpassed their respective targets of $4bn and $1bn.

The fundraising was wrapped up in less than five months with demand exceeding the hard-cap for both strategies.

The vehicles were capped at this level due to the deployment rate of Towerbrook IV, according to a person familiar with the strategy. The person added that due to the GP's proprietary deal-sourcing method it does not tend to compete in auctions and therefore deploys more slowly than a standard buyout fund.

Towerbrook IV held a final close on $3.5bn in February 2013 and was deployed at 44% as of December 2017, according to Unquote Data. TSO I held a final close on $800m against a $600m target in November 2015.

Both funds will be managed by the same investment team.

Investors
Towerbrook said the latest funds received strong backing from both existing and new investors, including public pension funds, sovereign wealth funds, financial institutions, endowments and family offices across the US, Europe and Asia.

The Massachusetts and Kansas state pension funds committed $150m and $75m to Towerbrook V respectively, according to Unquote Data. Calpers was the largest LP in Towerbrook IV with a commitment of $380m.

Investments
Towerbrook V will take controlling stakes in mid-sized and large companies across Europe and North America. It aims to target less competitive and more complex situations such as carve-outs and restructurings.

TSO II will take not-for-control stakes in companies with a similar profile, taking advantage of attractive opportunities outside of the private equity strategy. The fund will target stressed and distressed debt instruments in both the primary and secondary markets as well as structured equity and structured assets in Europe and the US.

People
Towerbrook Capital Partners – Ramez Sousou, Neal Moszkowski (co-CEOs).