Monomoy Capital Partners Closes $589 Million Family Fund I

By Amara Osei

Monomoy Capital Partners announced the closing of Monomoy Family Fund I with $589 million in total commitments. The New York-based private investment firm focuses on middle-market private equity and credit, and it said the fund was oversubscribed above its $500 million external hard cap.

Monomoy’s general partner and affiliates committed $89 million, representing approximately 15% of the fund’s capital. The company said that investment placed its own capital alongside institutional limited partners and reflected its emphasis on aligning interests with those investors.

Monomoy said fundraising finished three months after the vehicle launched, and the fund became fully allocated within two weeks. All external commitments came from the firm’s existing limited-partner base.

Monomoy said the existing external investor base included:

• Endowments and foundations
• Pension plans and insurance companies
• Family offices

Ashley Johansen, Managing Director and Head of Investor Relations at Monomoy Capital Partners, said: “Our thanks go to our limited partners who backed this fund. They committed quickly, and we were able to rely on support entirely from within our existing investor base. That trust is something we work to earn with every fund.”

What will Family Fund I buy?

Monomoy said the fund will target lower-middle-market businesses with enterprise values of $200 million or less. Its stated transaction formats are:

• Family-owned companies
• Corporate carve-outs
• Take-private transactions

The fund will focus on three industries, according to Monomoy:

• Industrial
• Consumer
• Services

The strategy builds on Monomoy’s 21-year history of investing in manufacturing, distribution and service businesses. The company said the dedicated vehicle expands that capability alongside its flagship Monomoy Capital Partners Fund V.

Monomoy said Family Fund I and Fund V together position the firm to pursue businesses generating approximately $15 million to more than $250 million in annual EBITDA. The company said the range gives Monomoy access to a broad segment of the middle market.

Dan Collin, Founding Partner and Co-CEO at Monomoy Capital Partners, said:

“Family Fund gives us dedicated capital to pursue transactions with enterprise values of $200 million and below, an area of the market we’ve covered for more than two decades.”

“Combined with our flagship Monomoy Capital Partners Fund V, we have the ability to be the buyer of choice for businesses with annual EBITDA ranging from $15 – $250+ million.”

“Consistent with our view of aligning our future performance with our limited partners, Monomoy and its affiliates have committed nearly 15% of the fund capital.”

How will Monomoy improve portfolio companies?

Monomoy said its in-house Operating Team will work alongside investment professionals and portfolio-company management teams. The team will identify operational improvements, implement tailored value-creation initiatives and support long-term business growth, according to the firm.

The company identified three operating priorities:

• Strengthening existing operations
• Helping portfolio companies improve performance
• Preserving the underlying capabilities that make businesses attractive acquisition targets

Monomoy said Family Fund I expands its ability to pursue smaller companies while retaining its focus on industrial and consumer-oriented businesses throughout North America. The firm currently manages more than $6 billion in assets across its investment funds. Paul Hastings LLP served as fund counsel for the fundraising, according to the announcement.

The next phase is deployment of the $589 million across companies valued at $200 million or less. Whether Family Fund I broadens Monomoy’s middle-market reach without changing its industrial and consumer focus will depend on those investments and the work of its in-house Operating Team.