Gryphon Investors Raises $1.1B For Oversubscribed Fourth Fund

Nov 21 2016 | 6:19pm ET

Gryphon Investors has held a final close on its fourth buyout fund, raising $1.1 billion in capital commitments and significantly exceeding its original target of $600 million.

The oversubscribed fund, named Gryphon Partners IV LP, closed at its hard cap, Gryphon said in a statement. It will continue the firm’s nearly 20-year history of partnering with North American companies in business services, consumer products and services, healthcare, and industrial growth industries.

Investors in the fund include a diverse group of domestic and international pension funds, insurance companies, asset managers, foundations and high net worth families, the company said. Approximately 80% of the institutional investors from Gryphon’s prior fund re-upped in Gryphon IV at an average of 200% of their prior commitments.

Gryphon’s third fund closed in 2006 with $415 million, and it added a $100 million co-invested bridge fund in 2008. The firm raised $365 million for a second bridge fund, named Fund 3.5, in 2013.

“We greatly appreciate the enthusiastic support we received from our existing and new investors,” said David Andrews, Gryphon’s founder and CEO, in a statement. “The LP market’s confirmation of Gryphon’s unique integration of specialized deal and operating professionals from investment origination through exit to generate substantial alpha on a consistent basis was especially gratifying.”

The fund has already made five new platform investments totaling more than 40% of Gryphon IV’s capital, according to the statement. 

Based in San Francisco and founded in 1994, Gryphon Investors focuses on middle-market companies and makes investments of $35 million to $150 million per portfolio position. The firm has raised approximately $2.5 billion of cumulative equity commitments.

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