Boone Capital Launches Event-Driven, Special Situations Fund

May 8 2007 | 11:39am ET

New York-based Boone Capital Management this month launched its Boone Capital Levered Fund, an event-driven and special situations hedge fund, with $15 million. The new offering will be managed alongside the firm’s flagship Boone Capital Partners Fund.

The fund will invest in small- and mid-cap companies, particularly companies with significant leverage, going through operational restructuring or capital refinancing. “We look at both the debt and equity of those companies,” said David Markus, Boone’s co-founder.

According to Markus, an example of a long-term investment for the fund is Graphic Packaging Corporation, which provides paperboard-packaging products to multinational brewers, soft-drink bottlers, food and other consumer products companies, as well as to independent and integrated corrugated converters.

“It’s very levered and is starting to generate significant free cash flow moving earnings and it’s right in our sweet spot,” said Markus.

The fund is looking to raise $100 million within the next six months from family offices and funds of funds. It charges fees of a 1.5% management and 20% performance fee, with a $1 million minimum investment requirement.

Markus, a former co-founder of Delaware Street Capital, founded Boone in March 2005 with partner Jeffrey Wertheim, a former portfolio for Avery Partner’s credit and distressed strategy.

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