CHICAGO (January 25, 2011) — On January 14, 2011, Fellowship Capital Partners (FCP) announced the completion of its fundraising and the commencement of its search to acquire and grow a business. McDermott Will & Emery's private equity partners Raam S. Jani and Ryan D. Harris advised FCP in the formation of its search fund which will be used as a vehicle through which to make an acquisition of a lower middle-market, service-based business.
Based in Chicago, FCP is a traditional search fund formed to analyze potential target companies and then acquire and operate the target company for a period of time prior to divesting. FCP is focusing on businesses that generate between $10 and $50 million of annual revenue with strong, predictable cash flow in a growing industry. The principals at FCP will assume senior management positions in the target company after making the acquisition.
"It has been challenging for search funders to raise capital in this economic environment, but search fund investors see something in the principals of FCP that they like," commented Mr. Harris. He continued, "In the search fund space, so much is riding on the investors' belief in the principals' ability to find an appropriate investment, consummate an acquisition transaction and then be able to operate the target company effectively leading to a high-value exit." Mr. Jani added, "FCP has extremely savvy principals and their business operation strategies will undoubtedly lead to success."
McDermott has one of the world’s leading private equity practices and has a strong presence in the search fund space. The Firm assists clients in connection with their control and minority investments, including initial acquisitions or start-ups, divestitures, add-on acquisitions, financings and various exit transactions, including dispositions, hedging transactions, initial public offerings and complex recapitalizations. McDermott's lawyers provide coordinated teams with comprehensive experience to assist clients with all phases of their investments. McDermott’s overall strength in completing private equity transactions is a major asset to search funders looking to demonstrate to investors that they will be able to not only find an appropriate target company, but then also effectively consummate an acquisition.
McDermott’s Search Fund Practice is headed by Ryan D. Harris, Samuel W. Wales and Raam S. Jani.
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