NRD Capital Management Raises $104.5M For Second Fund

Jul 13 2017 | 8:29pm ET

Franchise specialist NRD Capital Management has raised $104.5 million in capital commitments for its second private equity fund, exceeding the initial target. 

Capital for the new fund, named NRD Partners II L.P., was secured over the past four months, the company said in a statement. NRD focuses on companies specializing in franchised and multi-location business models. 

As with its predecessor vehicle, which raised $46 million in 2014, Fund II will invest in brands that offer superior products/services and compelling unit economics, and maximize their potential through the franchise business model.

The company will focus on domestic and international restaurant concepts, as well as new and emerging verticals such as healthcare franchising, in order to take advantage of important future trends.

Fund II enjoyed significant support from Fund I’s investors, with 95% participating in the new pool, NRD added. 

“We are extremely pleased at how quickly we were able to raise this fund as it is a testament to the confidence our limited partners have in our unique investment philosophy.” said Aziz Hashim, managing partner of NRD. “Interest has been so great that the fund is oversubscribed and has a waiting list of additional interested investors.” 

Hashim continued: “With our operating expertise, wide network of franchisees and partnership approach to interacting with our portfolio companies, we have the unique ability to enable accelerated, but responsible, growth for brands.  We look forward to making collaborative equity investments to enhance our portfolio and create opportunities for entrepreneurs through franchising.”

Founded in 2014 by Hashim, Atlanta-based NRD has raised more than $150 million of equity capital commitments since inception. The differentiated private equity fund takes a unique approach to investing, applying operating expertise and leveraging its wide network of franchisees in addition to infusing capital in its portfolio companies.

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