Siguler Guff, a multi-strategy private markets investment firm with approximately $16 billion of assets under management, announced today that it has completed fundraising for Small Buyout Opportunities Fund V LP. Fund V was oversubscribed after five months of fundraising, exceeding its $1.65 billion target and closing above its hard cap on $1.97 billion. The Fund’s re-up rate was 95%, representing a significant vote of confidence from existing investors, and is the largest small business buyout fund in Siguler Guff’s history.
Through direct investments and by partnering with specialist private equity sponsors, Fund V, as has been the case in its previous four funds, will focus on investing in a diverse set of small and lower middle market companies, typically with less than $200 million in annual revenues, less than $20 million of annual EBITDA, and consistently high profit margins.
Fund V will continue to target established, often founder-led companies with niche market-leading positions where value can be created through building and growing the business. In each of its small business buyout funds, Siguler Guff seeks strong alignment of interests with the seller and management team through significant seller rollover and value-added improvements that drive superior financial performance.
Since launching its small business investment strategy in 2005, Siguler Guff has committed over $6 billion to over 800 companies across the United States, with nearly 500 realizations. Siguler Guff is currently one of the largest and most active investors in the small and lower middle market, with commitments to over 100 private equity funds and over 200 equity co-investments since its formation.
Kevin Kester, Managing Director and Co-Portfolio Manager of the Fund, and head of Siguler Guff’s small business investment strategy, said, “We are pleased to have closed our fifth small business buyout fund, our largest ever, and gratified to have received such strong support from our limited partners for this exciting investment strategy that has created tremendous value for all stakeholders.
“With over 400,000 companies, representing approximately 96% of all businesses in America, small businesses are the engine that drives the U.S. economy,” added Mr. Kester, who joined Siguler Guff in 2004 and founded the Small Buyout Opportunities Funds.
Jonathan Wilson, Managing Director and Co-Portfolio Manager of the Fund commented, “Over the past 17 years, we have developed a time-tested strategy for successfully investing in this important market sector through commitments to private equity funds and equity co-investments alongside small buyout fund managers and deal sponsors. We look forward to collaborating with our partners to identify, invest and build extraordinary businesses.”
Drew Guff, Managing Director and Founding Partner of Siguler Guff, added, “We are proud that small business investing has long been one of Siguler Guff’s core strategies. Over the years, we have cultivated strong relationships within the small business community and we maintain an unparalleled network that is the foundation of our success. We want to express our deep appreciation to our limited partners for their continued trust in this important investment strategy that has consistently generated outsized returns.”
About Siguler Guff
Siguler Guff is a leading global multi-strategy private markets investment firm, which together with its affiliates, has over $16 billion of assets under management, as of March 31, 2022, and over 25 years of investment experience. Siguler Guff seeks to generate strong, risk-adjusted returns by focusing opportunistically on market niches. Siguler Guff’s core investment strategies include opportunistic and private credit, small business private equity, distressed real estate and emerging markets. Siguler Guff’s investment products include direct investment funds, multi-manager funds and customized separate accounts. Founded in 1991 and headquartered in New York, Siguler Guff maintains offices in Boston, London, Mumbai, São Paulo, Shanghai, Seoul, Tokyo, Hong Kong and Houston, TX. To learn more about Siguler Guff, please visit www.sigulerguff.com.