Targeted PPM drives $275 million fundraise for a private equity firm

Posted by | Fuld & Company

Objective 

An established middle-market Private Equity (PE) firm with over $1 billion in AUM engaged Fuld to support their $275 million capital raise for a third fund. The goal was to capitalize on emerging opportunities in the renewable energy sector within a 12-month timeframe. The firm needed a compelling Private Placement Memorandum (PPM) to help secure investor commitments.

Solution 

Fuld worked closely with the PE firm to develop a comprehensive and persuasive PPM, and develop a targeted list of Limited Partners (LPs) to maximize investor outreach:

• PPM development:
  • Detailed the fund’s investment thesis, objectives, and investment team’s experience.
  • Developed a detailed financial model projecting a 12-15% IRR over 10 years, supported by renewable energy case studies.
  • Refined and reviewed the PPM, including fund performance summaries, proprietary sourcing strategies, and new fund terms, to ensure clarity and compliance.
• Investor outreach:
  • Built a tailored LP list of over 500 institutional investors, including pension funds, endowments, and family offices with a known interest in renewable energy.
  • Segmented LPs by region, typical investment size, and sustainable investment preferences to help the PE firm prioritize high-potential leads and maximize the likelihood of a successful fundraise.

Outcome 

• The PPM enabled the PE firm to clearly articulate its investment thesis, objectives, and value proposition to potential investors.
• The fundraising campaign secured over $275 million in commitments within just 10 months, exceeding the target and timeline.
• Following the campaign’s success, Fuld continues to support the firm with due diligence, valuation analysis to ensure the firm pays the correct price for targets, and add-on acquisitions contribute positively to growth and earnings.

Tags: Financial Services, Mergers & Acquisition, private equity