Altas Partners proves power of longer-life PE funds with $3bn hard cap Fund II close

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Canadian buyout house Altas Partners has sealed a sensational fundraise by hitting the $3bn hard cap for its second longer-life private equity fund.

The new vehicle is three-times the size of the firm’s debut fundraise from 2016, and underlines the growing attractiveness of PE vehicles which can hold portfolio companies for longer than the usual three-to-five years.

Altas looks to invest between $250m and $1bn of equity in its deals, targeting high-quality businesses that are hard to replicate, with attractive cash flow profile and returns on re-invested capital, and minimal risk of obsolescence.

It said it plans to continue its strategy of backing just one or two market-leading businesses each year.

The sophomore raise brings Altas’ capital under management to more than $7bn. The firm, which was founded in 2012, invested on a deal-by-deal basis until closing its $1bn debut fund.

 

Altas founder and managing partner Andrew Sheiner said, “We are grateful for the enthusiastic response to the fund, and we remain singularly focused on creating lasting value for our investors as an engaged owner of high-quality businesses.”

The firm’s past and present portfolio companies include DuBois Chemicals, University of St Augustine for Health Sciences, Tecta America, Hub International, PADI and Medfort.

Earlier this year the firm agreed to sell its eye-care business Capital Vision Services in a $2.7bn deal with Goldman Sachs’ merchant-banking division.

Altas fundraise comes four months after global private equity major CVC beat its target for its own second longer-term private equity fund by holding a €4.6bn final close.

KKR revealed at the start of the year that it had raised $5.5bn of capital for its longer-term Core Investment strategy, to go alongside another $3bn from its own balance sheet.

Carlyle is also believed to be back in the market for its second longer-term Global Partners fund, which follows its $3.6bn debut vehicle in the strategy launched in 2015.

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