CHICAGO, Feb. 1, 2022 /PRNewswire/ -- 5th Century Partners ("5CP"), a purpose-driven private investment firm, announced today the close of its debut fund, 5CP Fund I, which closed with $144 million in capital commitments. Fund I was substantially oversubscribed, surpassing its target of $100 million. Fund I's investors consist of institutional and strategically aligned limited partners, including corporations, endowments, family offices, fund of funds, state agencies, insurance companies and foundations.
5CP is a next-generation private investment firm that focuses on growing middle market companies within the healthcare, consumer and business services industries. The firm seeks to generate strong financial outcomes for its portfolio companies that help improve the economic outlook of diverse communities and stakeholders.
"We're excited to launch a private investment offering that we believe embraces our increasingly diverse world and creates opportunities for current and future leaders to thrive," said Marques Torbert, co-founder and partner, 5CP. "As part of our strategy, we're partnering with diverse stakeholders – from founders and owners to operators and advisors – who share our vision to transform the future of business and understand the full impact of financial success."
5CP partners with business leaders who are committed to driving economic and social impact. The firm invests in middle market companies that fit its value creation playbook and taps into diversity as a tool to help improve the performance of these companies. Within the middle market, 5CP focuses specifically on companies within healthcare, consumer and business services, which aligns with the team's operational and investing experience.
With this strategic approach, coupled with 5CP's expertise in these segments, the firm believes it is well positioned to generate growth for its portfolio companies, furthering its goal of providing more opportunity for ownership and transformative wealth creation for employees, communities and other stakeholders.
"We are grateful for the strong interest and support we received from our institutional investor base," said Bruce Hampton, co-founder and partner, 5CP. "We believe the success of the fundraise demonstrates the strength of our proprietary strategy, strong industry knowledge and deep operational expertise. Combined with our investment approach, we are well positioned to execute on our goal to be a partner of choice for founders and operators seeking a value-add capital partner."
5CP Fund I
5CP's first fund aims to build a portfolio of 8-10 platform investments. The fund will focus on middle market companies that have $2 million to $20 million of EBITDA and present compelling opportunities to build long-term, sustainable value. Individual equity investments held by the fund will have a target range of $5 million to $50 million, with larger investments done in partnership with the fund's limited partners. The fund has already made two initial investments with Vital Care, a value-add distributor of essential medical surgical supplies, and Estyle, a manufacturer and marketer of primarily multicultural haircare products for women. These transactions closed in December 2020.
Specialized Team of Experts, Partners and Advisors
5CP believes its investment professionals are uniquely positioned to drive the firm's differentiated strategy and execute on its plans for its portfolio companies. The team brings combined expertise in private equity, impact investing and operations within the firm's focus industries. In addition, 5CP understands the opportunities and challenges of operating a middle market business and has access to resources and relationships through its established ecosystem of Fortune 500 companies, industry leaders and corporate partners.
"While our investment strategy is a 5CP differentiator, we also recognize the responsibility our firm, and corporate America at large, has in helping address larger economic inequities," said Jessica Patton, co-founder and principal, 5CP. "Our team is deeply passionate about the far-reaching benefits of our efforts, and we believe that providing not only capital, but insights, resources and relationships, will lead to sustainable growth and ultimately strengthen diverse communities."
5CP has partnered with Concentric Equity Partners, the direct investing arm of Financial Investments Corporation, a private asset management firm and family office with over $2 billion in investment commitments under management, that is serving as an anchor investor. The firm also has selected advisors who actively contribute enhanced sourcing and diligence expertise, rigorous investment insights and best-in-class fund governance. Advisors include:
- Thomas Barry, president and CEO, Zephyr Management
- Michelle Collins, president, Cambium; board member of Health Care Service Corporation (HCSC), Ulta Beauty and Canadian Imperial Bank of Commerce (CIBC)
- David Layton, CEO and head of private equity, Partners Group
- Eric A. Reeves, managing director, Duchossois Capital Management
- Jennifer Steans, president and CEO, Financial Investments Corporation
Legal counsel for the firm was provided by Kirkland & Ellis.
About 5th Century Partners
5th Century Partners ("5CP") is a purpose-driven private investment firm that believes financial success drives economic and social advancement. We partner with founders and operators of growing middle market companies that share our commitment to transform the future of business. Our team works alongside the firm's portfolio companies to maximize their potential, which we believe in turn can lead to outsized impact for diverse stakeholders.
SOURCE 5th Century Partners