York Capital Management, advised by Kirkland & Ellis, has wrapped up its latest private equity fund after securing roughly $800 million from limited partners, with plans to target special opportunities in middle-market companies based in North America, the firm said Wednesday.
The fund from New York-based York Capital, called York Special Opportunities Fund III LP, will follow in the footsteps of its predecessors by mainly targeting control investments in North America-based middle-market businesses in an array of sectors, according to a statement. The fund, which raked in capital from investors old and new, will typically make individual investments of between $35 million and $200 million.
“This is a great time to have substantial dry powder and a team experienced in supporting management amid market disruptions and an uncertain climate,” said Jamie Dinan, CEO and founder of York Capital, and a member of the new fund’s investment committee.
The fund has already made one investment, acquiring The Good Feet Store, which is a manufacturer and franchise retailer of arch supports and associated orthotic products. Headquartered in California, The Good Feet Store boasts more than 150 locations in the U.S.
“We are eager to bring our financial and operational expertise to bear and assist companies and management teams in navigating these turbulent times and executing their growth strategies,” said Zalmie Jacobs, a partner at York Capital and head of private equity for the firm.
In addition to announcing the closing of the new fund, York Capital revealed on Wednesday that it has added Harish Nataraj as a managing director. Nataraj previously worked as a partner and managing director in Angelo Gordon’s private equity group, where he led investments in areas like financial services, consumer, health care services and business services.
York Capital first launched its middle-market special opportunities private equity strategy in 2008, and in the time since the firm has made more than 20 platform acquisitions. The previous fund in the strategy, York Special Opportunities Fund II LP, closed in 2014 after raising about $700 million. Before that, York Special Opportunities Fund I LP closed in 2008 with roughly $500 million in capital commitments.
Kirkland & Ellis LLP served as legal counsel for the new fund, with Campbell Lutyens & Co. acting as placement agent.
The Kirkland team was led by investment funds partners Jai Agrawal, John Budetti, Nadia Murad Jamie Walter and Phillip McEachen and associates Gregory Denis, John Folkerth, Molly Kirwan, Noah Qiao and Hannah McCarthy; and tax partner Meredith Levy and associate Arash Lotfi.