Austin, Texas-based private equity firm Peak Rock Capital LLC announced Tuesday it has closed its inaugural fund at its hard cap with committed capital of $700 million, after attracting significant investor interest and surpassing its initial goal of $400 million.
The Peak Rock Capital Fund LP and its parallel fund received its investments from limited partners that include private and public pensions, sovereign wealth funds, foundations and endowments, funds of funds, and other institutional investors. The funds will aim to make debt and equity investments in middle-market companies where they can assist management teams in improving profits and driving growth through operational and strategic changes, the firm said.
Peak Rock said its flexible capital and experienced team will allow it to close deals quickly and with a high degree of certainty.
"We are enormously appreciative of and humbled by the overwhelming response to our inaugural fund,” Peak Rock CEO Anthony DiSimone said in a statement. “We see this successful milestone as a reflection of our team's ability, through hundreds of transactions and various economic conditions, to identify and add outstanding value to businesses in the middle market.”
The funds’ investment period has already begun and they have made multiple investments, according to the firm. In May, the private equity firm announced it had acquired Atlas Paper Mills LLC, a leading manufacturer of tissue paper headquartered in Miami.
Peak Rock invests in companies that have revenue of between $50 million and $1 billion, typically investing enterprise values from $25 million to $500 million. The firm targets companies that are in a strong competitive position within a sustainable niche, which are facing financial and strategic or operational challenges and are in need of a unique capital solution. Specific targeted industries include business and commercial services, consumer, energy, health care, manufacturing, media and others.
"We would also like to thank our friends in the investment banking, financial advisory, legal and lending communities for their tremendous support,” Steve Martinez, managing director of Peak Rock, added. “We look forward to continuing and expanding our relationships as we build Peak Rock's portfolio.”
Kirkland & Ellis LLP, led by Bruce Ettelson and John Muno, advised Peak Rock in the final closing of the funds.