Lower Middle Market Private Equity Firm with
Unique Merchant Banking Model
LOS
ANGELES, July 1, 2024 /PRNewswire/ -- American
Discovery Capital ("ADC"), a leading merchant bank focused on
founder-led and family-owned companies operating in the lower
middle market, announced the final closing of American Discovery
Fund II ("ADF II") at $190 million,
representing a more than 3x increase over ADC's first fund,
American Discovery Fund I ("ADF I"). ADF I closed in 2019 and
invested $60 million across six
portfolio companies and 17 add-on acquisitions. Consistent with its
prior fund, ADF II will continue to target majority and significant
minority investments as the first institutional capital in leading,
founder-led and family-owned companies focused on the business
services and software sectors. ADF II has already closed on three
investments and is actively seeking new investment
opportunities.
ADF II received commitments from a diverse group of limited
partners, reflecting significant reinvestments from ADC's existing
investor base in ADF I, and a broad array of new investors who
share similar entrepreneurial qualities as the companies ADC
invests in, including wealth managers, family offices and high net
worth individuals. Importantly, over 17% of ADF II's commitments
came from the partners and employees of ADC, reflecting the firm's
long-term, relationship-driven orientation and commitment to its
investors and portfolio companies and a significant alignment of
incentives across all constituents.
"We are delighted to announce the successful close of our second
fund and are grateful for the support of our limited partners, many
of whom have been investing with us since the launch of our first
fund over five years ago," said Brian
Webber, Managing Partner of ADC. "We chose the name
'American Discovery Capital' to reflect the pride, optimism and
enthusiasm we see in the growth potential of U.S. companies,
particularly founder-led and family-owned businesses in the lower
middle market that drive the majority of job creation in the U.S.
We believe the circumstances surrounding these companies and the
highly fragmented nature of this market segment have caused it to
be overlooked by traditional private equity investors, and that we
are well-positioned to source and cultivate differentiated
investment opportunities in our sectors of expertise."
ADC believes its merchant banking model is a unique
differentiator in the private equity industry, allowing it to
generate proprietary, non-competitive investment opportunities from
within its relationship network, and providing the firm with a
constant source of market intelligence, industry expertise, M&A
prospects, and professional relationships that benefit its
portfolio companies.
"We founded ADC because we wanted to work with founder-led
businesses, which embody the grit, determination and
entrepreneurial spirit which are the heart and soul of this
country," said John Joliet, Managing
Partner of ADC. "Our merchant banking model, and the deep expertise
and relationship networks of our senior team which comes from
decades of collective professional experience, puts us in constant
dialogue with exciting, well-established, growth-oriented companies
and the founders and management teams who drive them. We look
forward to partnering with these founders and collaborating with
them on their next chapter of growth."
Kirkland & Ellis served as legal counsel for ADC.
ADC Partners: Laurent Degryse,
Mike Denbeau, Jeff Gelles, John
Joliet, Frank McMahon,
Peter Shoemaker, Brian Webber.
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SOURCE American Discovery Capital