Peak Rock Capital Fund III hits $2bn hard-cap

Alessia Argentieri
08 April 2021

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US-based private equity firm Peak Rock Capital has held a final close for its third flagship fund, Peak Rock Capital Fund III, on its $2bn hard-cap.

The vehicle was oversubscribed and exceeded its initial target of $1.3bn.

The fund comprises a private equity platform, which focuses on carve-outs and high-growth opportunities, and a credit vehicle, which invests across capital structures, with a broad mandate to provide flexible and tailor-made capital packages to mid-market and growth-orientated businesses.

Peak Rock principal Ralph DeBernardo said the fundraise was a "completely virtual" undertaking and enjoyed "strong investor demand among some of the most sophisticated institutional limited partners in the world".

Peak Rock Capital Fund III is larger than its predecessor, which held a final close in January 2018 alongside Peak Rock Capital Credit Fund II, reaching a combined $1.3bn hard-cap and exceeding the initial $900m target. Peak Rock's inaugural fund closed on $700m in 2013.

Recent investments made by Peak Rock in Europe include the acquisition of AMB, an Italian manufacturer of films for food packaging; and the purchase of UK-based snack bar manufacturer Halo Foods.

Peak Rock also manages a real estate platform, which specialises in equity and debt investments in small to medium-sized real estate assets across economically growing geographies.

John Muno and Kevin Wessel from Kirkland & Ellis served as legal counsel in the formation of the new fund.

Investors
Peak Rock Capital Fund III's investor base is broadly diversified and is comprised of several large LPs, including public and private pensions, sovereign wealth funds, endowments, foundations, insurance companies, asset managers and consultants.

Investments
Peak Rock Capital Fund III makes equity and debt investments in mid-market companies based across North America and Europe.

The fund targets businesses where Peak Rock can support senior management to drive rapid growth and profit improvement through operational and strategic initiatives.

The vehicle has a special focus on corporate carve-outs, and partnering with families and founders seeking first-time institutional capital.

It targets companies with resilient demand drivers, especially those operating within the consumer, industrial, technology and healthcare sectors.