L Squared Closes Fourth Fund at $840 Million

L SquaredOther NewsL Squared Closes Fourth Fund at $840 Million




November 15 , 2023 | Posted by Adam Kimura |

L Squared Closes Fourth Fund at $840 Million

Newport Beach, CA, November 15, 2023 – L Squared Capital Partners (“L Squared” or “the Firm”) is thrilled to announce that it recently held the final closing for its fourth private equity fund (“Fund IV”), at $840 million.  L Squared fully committed its $505 million third fund earlier this year with the investment in ERA Industries. Since its founding in July of 2014, L Squared has now raised four funds and accepted commitments of over $2 billion from its investors.  This fundraise received strong support from existing investors and was supplemented by several new high-quality limited partners that included both institutions and additional large family offices, both domestically and internationally.

To date, L Squared has completed 17 platform investments and is in the process of closing its 50th add-on transaction, acquiring over $3 billion of enterprise value.  All investments have been made within the Firm’s sectors of focus including Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services.  The vast majority of these transactions have been completed with founder-led companies undergoing their first institutional transaction.   The Firm has successfully completed several exits thus far across Funds I and II.  L Squared currently manages ten platform investments across its predecessor three funds.  L Squared intends to add eight to ten new platform investments within Fund IV while continuing to manage the Firm’s portfolio from its predecessor funds.  The Firm will continue to focus on majority investments in growing companies based in North America that operate in its sectors of focus.

To support the continued growth, L Squared has added four highly talented individuals to its investment team at the Vice President and Associate levels and has continued investing in the Firm’s back office through the addition of a Vice President of Finance.  L Squared is also very pleased by the continued progress of its long-tenured team members as their careers continue to flourish.  L Squared will continue to selectively add talent to the organization.

L Squared’s strong relationships with existing investors drove very high investor retention in Fund IV from prior funds and also opened the path to a number of new investors as introductions were made within the Firm’s network.  L Squared’s unique structure attracted several new family office investors in Fund IV in addition to new institutional investors that valued L Squared’s unique private equity model and long-term track record of value creation in partnership with its portfolio company management teams.

Co-Founder and Managing Partner Rob Healy commented, “the strong growth in our business in a somewhat more challenging economic environment is a great testament to the hard-working management teams that run our businesses.   We could not do what we do without their tremendous dedication to excellence.  All of us at L Squared owe them a debt of gratitude.   We are also humbled and honored by the incredible support that we received from our investors.  We plan on working very hard to ensure their capital is invested wisely in growth businesses within our areas of expertise.”

The firm is managed by Rob Healy, Jeff Farrero, Sean Barrette, Randall Hunt and Adam Kimura, all of whom worked together at Chicago Growth Partners prior to founding L Squared in July 2014.

About L Squared Capital Partners

L Squared Capital Partners is a private equity investment firm with over $2 billion of equity commitments under management and is headquartered in Newport Beach, CA, that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. L Squared’s unique investor base of family offices and institutions enables the Firm to focus on long-term value creation driven by revenue and earnings growth, not financial engineering or market timing. The principals of L Squared have worked together for over 15 years and have over 125 years of combined experience investing in growing private companies.

For additional information, please visit www.LSquaredCap.com.

Vedder Price, PC served as legal advisor and Eaton Partners, a Stifel Company, served as the placement agent to L Squared as part of the fundraising process.

This press release is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase of any investment. Investing with any investment firm is suitable only for qualified investors that fully understand the risks of such an investment. L Squared Capital Partners is an investment adviser registered with the United States Securities and Exchange Commission. Investments with L Squared Capital Partners are only offered in accordance with applicable securities laws.