- Wednesday August 31, 2016
On August 15th Detroit-based Peninsula Capital Partners L.L.C. held its final closing on its sixth subordinated debt and structured equity partnership, completing its fund-raising with $402 million of capital commitments, a level consistent with the General Partner’s targeted size range. Fund-raising for Fund VI was launched in late 2014 and a first closing on over 80% of total commitments occurred a few months later in July 2015. Fund-raising was mostly completed in the first quarter of 2016, with a small final closing in August 2016, mostly to accommodate increased commitments to the Fund by existing investors.
As has been the case for all previous Peninsula partnerships, the General Partner raised the Fund entirely in-house without the assistance of a third-party fund-raiser organization. The General Partner’s President & Chief Investment Officer, Scott Reilly, principally coordinated the effort. Re-upping LPs from prior funds comprise a meaningful percentage of the new fund’s total capital.
“We are very grateful for the continued patronage of many of our LPs, some of whom have been investors in four, five or even all six of our funds.” stated Mr. Reilly. “We are further grateful for the addition of several new LPs to our investor group with whom we look forward to building similar long-term relationships. We believe our investors appreciate our 20-plus year commitment to non-sponsored mezzanine and structured equity investing.”
Peninsula Fund VI has essentially the same investment objectives as its predecessors, namely focusing on non-sponsored or independently-sponsored transactions in the lower middle market, both as a control or non-control investor. The Fund will invest subordinated debt and/or equity in amounts from $5 million – $50 million, and has already closed five investments.
“We believe the market for our sort of customized and flexible debt and equity capital solutions for businesses is as viable and robust as ever. We are pleased the fund-raising stage for Fund VI is completed, and look forward to investing the balance of its capital.” stated Mr. Reilly.
Fund VI was preceded by a $389 million Fund V (2010), a $335 million Fund IV (2005), a $271 million Fund III (2001), a $143 million Fund II (1998), and a $53 million Fund I (1996).
Contact:
Scott A. Reilly, CFA
President & Chief Investment Officer
313.237.5100