One New York-based private equity firm is looking below the radar for deals. Five Elms Capital has held a first close of its maiden private equity fund with $14 million in capital commitments.
According to the firm, the new vehicle will target investments below the $10 million threshold that most other p.e. firms target.
“We are excited to launch our debut fund to help with the lack of expansion capital available to emerging businesses,” said Fred Coulson, founder and former senior investment professional at TH Lee Putnam Ventures. “Our fund size allows us to spend more time helping our portfolio companies get to the next level of growth as many of them are ignored by mainstream private equity.”
Although Five Elms typically seeks a minority ownership position, it will also participate in full buyouts and co-investments alongside its larger private equity peers. It also has the ability to invest in significantly larger transactions with the support of the firm’s co-investment pool from select limited partners.
The firm expects to finish fundraising in the second quarter of 2008 and is targeting $20 million in capital commitments.