Denver-based buyout house RedCloud Capital has relaunched after its founders, who left in 2013, wound down their new firm to come back to the business.
Kevin Mitchell and Sam Simpson founded RedCloud in 2004, but left the business to launch Lariat Partners in 2013.
Lariat managed to raise about $118m for its debut fundraise, just shy of the $125m it filed to collect in a US securities filing.
Investments made through that vehicle included Offen Petroleum, which the firm exited this summer as part of the winding-down process.
Mitchell said, “A majority of our portfolio has now been sold and for a variety of reasons and despite Lariat’s success, I’ve decided to return to RedCloud Capital.
“I am pleased to be joined by several members of the Lariat team and we will be actively investing in new platforms like we’ve been doing over the last 15 years.”
Mitchell is currently chairman of the boards of Ecoserv and Northern Agri Holdings. Prior to founding RedCloud, he was Managing Director of FMI Corporation, a mid-market investment banking and management consulting firm focused on the engineering and construction industry.
RedCloud said it plans to raise another institutional fund “in the near future”.
The firm plans to target businesses generating between $3m and $10m of EBITDA, eyeing companies with scalable business models that demonstrate a differentiated product or service and generate 10 per cent-plus EBTIDA margins.
Areas of focus include environmental services, food & agribusiness, value-added distribution, consumer products, and business services.
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