OceanSound, an investor in tech and tech-enabled services firms serving government and regulated enterprise end-markets, has closed its second fund.
The oversubscribed Fund II closed with $1.49bn in total capital commitments. The company secured backing from a wide range of partners, including pension plans, foundations and endowments as well as asset management firms, family offices and insurance companies.
Alongside affiliated co-investment vehicles and a single-asset continuation fund closed in April this year, OceanSound has raised over $2.15bn of committed capital in connection with the Fund.
Located in New York, OceanSound is focused on investing in middle-market enterprises where its expertise in government and regulated enterprises can help foster firm growth in high performance.
To date, OceanSound typically invests $75 to $300m through controlling-ownership positions in companies with enterprise values of $150 to $750m. The firm currently manages in excess of $3.7bn in regulatory AUM and has financially backed nine platform investments that have subsequently completed 38 add-on acquisitions.
OceanSound managing partner Joe Benavides said, “The successful closing of our second fund can be attributed to OceanSound’s differentiated, all-weather investment strategy together with proven execution which has included capital returned to investors from our inaugural fund.Since starting the firm shortly before the COVID-19 pandemic, we have raised two funds, closed a continuation fund, returned the majority of our inaugural fund’s capital to our investors, and closed nearly 50 transactions in challenging markets, especially for newer firms.
“We could not be more pleased with all we have accomplished and are confident in our execution as we build a scalable private equity business. We are extremely grateful for the support of our investors, who include some of the most respected institutional private equity investors. Their support underscores our ability to identify attractive platform company investments which we can transform into more strategically valuable businesses due to our proprietary perspectives and standardized ownership processes.”
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