Lightning $3.1bn fundraise sees turnaround specialist Atlas Holdings almost double AUM

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Turnaround-focused private equity firm Atlas Holdings has hit a $3.1bn one-and-done final close for its fourth flagship fundraise.

Atlas has roughly doubled its assets under management to just over $6bn through the hard cap close, which came after just four months of fundraising amid a market ripe for investing in financially-troubled businesses.

The new vehicle, Atlas Capital Resources IV, is close to twice the size of the firm’s predecessor vehicle closed in 2018.

Atlas hit a rapid $900m final close for Fund II in 2013, well above its $650m goal.

The firm targets control investments in companies “experiencing financial or operational stress”, and said the challenges caused by Covid-19 had illustrated its capabilities.

A statement from Atlas said, “Not only did Atlas’ existing portfolio companies perform well amidst unprecedented economic headwinds but Atlas also completed several strategic acquisitions, effectively doubling the total workforce of its companies around the globe to more than 40,000.

“The Atlas team’s deep-rooted experience operating in industries facing distress – and the ability to nimbly complete diligence and to execute in a highly disrupted environment – enabled Atlas to accelerate its growth during this challenging period.”

Atlas closed Fund III after a similarly rapid fundraise three years ago, reaching its $1.675bn hard cap.

Firm co-founder and managing partner Tim Fazio said, “When we started Atlas, we never anticipated that it would become what it is today, and we are extremely humbled by the confidence in our team that this fund represents.

“Raising a fund nearly double the size of our last is not simply a recognition of our track record as investors and operators.  It is an affirmation of the extraordinary people across the world that have consistently put us in a position to win.”

Capstone Partners served as exclusive placement agent for ACR IV, and Proskauer Rose provided legal counsel.

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