US private equity firm TZP Group has taken only nine months to close its second fund on $370m, significantly exceeding its initial target of $300m.
TZP Capital Partners II, which held a $180m first close in May, was backed by both existing and new LPs including sovereign wealth funds, pension funds, endowments, fund of funds, family offices, and financial institutions.
The fund is more than double the size of the $180m first vehicle closed in 2008.
Just like the first fund, the new vehicle will focus on control investments in business and consumer service companies with enterprise values of $50m to $250m. TZP noted that its investment team has significant operating and deal experience in the franchising, outsourced business and IT services, marketing and media services, travel and hospitality services, real estate services and specialty finance segments.
TZP managing partner Sam Katz said, “We are thankful for the tremendous level of support we received from our TZP I investors and are thrilled at the addition of such a prestigious group of new investors in TZP II.
“Our fundraising success validates the comparative advantage of our partner of choice investment strategy and reflects our teams’ ability to drive strong returns to our limited partners in TZP I.
“We look forward to leveraging the leading brand we have established in the lower middle market on behalf of our investors in TZP II.”
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