NEW YORK, April 18, 2018 – BBH Capital Partners, the private equity arm of Brown Brothers Harriman & Co. (“BBH” or the “Firm”), today announced the final close of BBH Capital Partners Opportunities Fund, L.P. (“CP Opportunities Fund” or the “Fund”) with capital commitments totaling $250 million, including approximately $50 million from the General Partner and other affiliated parties. CP Opportunities Fund was significantly oversubscribed and exceeded its initial capital commitment target of $200 million and closed at its hard cap.
The day-to-day activities of CP Opportunities Fund are led by Don Hardie, Patrick Kruczek and Jeff Price. Additional oversight of Fund activities, as well as BBH Capital Partners overall, is provided by Jeff Meskin, a BBH Partner and Head of Private Banking.
The Fund will target initial investments of up to $20 million in lower middle-market U.S. companies whose stage of development or capital needs are below the minimum investment thresholds for BBH Capital Partners V, L.P. (“CP V”). The investment strategy for CP Opportunities Fund will be consistent with the long-standing approach of BBH Capital Partners, namely, targeting investments in growing lower-middle market U.S. companies across a broad range of sectors within which the team has specific expertise: (i) Healthcare; (ii) Technology, Media & Telecommunications; and (iii) Business Products & Services. BBH Capital Partners employs a differentiated, flexible investment approach to make majority and significant minority investments in partnership with business owners and outstanding management teams. CP Opportunities Fund complements the ongoing private equity investment activities of CP V by expanding the range of available investment opportunities. As such, BBH Capital Partners is now able to fully participate in the lower middle-market segment for U.S. private equity investments.
The Fund was raised primarily from BBH Private Banking clients, as well as affiliates of BBH, the Fund and the General Partner. “We are grateful for the ongoing support of our long-standing Private Banking clients, most of whom have invested with us before,” said Mr. Meskin. “The Fund represents a compelling investment opportunity for our clients and provides a high degree of alignment with BBH overall through the significant investment made by the General Partner and its affiliates. In this way, we invest alongside our clients and work together, seeking to generate superior results.”
“The Fund will benefit tremendously from being part of the larger BBH network, both within BBH Capital Partners and firmwide,” said Mr. Hardie, Co-Manager of CP Opportunities Fund. “The long-standing investment experience, reputation and reach of BBH will allow us to be a value-added partner to the founders, owners and management teams with whom we will invest. We strive to invest and act like business owners, and the breadth of resources and extensive ecosystem of a 200-year-old firm provide important points of differentiation. We believe this will help us produce attractive returns for our investors and partners while controlling downside risk.”
“Owners and operators of businesses look to us as a true partner. Our flexibility, in terms of how we invest and our focus on crafting investments that address the specific concerns of all stakeholders, enables us to solve their strategic and capital needs without any predisposition to a particular structure or transaction type,” said Mr. Price, Co-Manager of the Fund.
“CP Opportunities Fund has a deep pipeline of attractive investment opportunities,” Mr. Meskin added. “Our long-term participation in the lower middle market, our investment approach and our focus on partnering with business owners and managers to promote growth is applicable, regardless of the market conditions. Throughout business cycles, BBH Capital Partners has and will continue to employ our strict investment criteria with discipline to ensure that we maximize returns for the Fund’s Limited Partners and investor partners while controlling risk.”
BBH did not utilize a placement agent for the Fund. Katten Muchin Rosenman LLP provided legal counsel.
About BBH Capital Partners
BBH Capital Partners, a private equity strategy of Brown Brothers Harriman & Co., provides highly customized capital solutions to growth-oriented lower middle-market companies. BBH Capital Partners, across its two active funds, CP Opportunities Fund and CP V, typically invests between $10 million and $150 million per platform investment and has the flexibility to act as a control or non-control investor. BBH Capital Partners supports a variety of transactions, including management or leveraged buyouts, growth financings, recapitalizations (including dividend recapitalizations), buy-and-build strategies and acquisitions.
About Brown Brothers Harriman
BBH is a privately held financial institution that has been a thought leader and solutions provider for 200 years. The Firm serves individuals, families, businesses and institutions in its three business lines: Private Banking, Investment Management and Investor Services. In addition to the $33 billion in assets under management (AUM) in Private Banking, BBH Investment Management has $64 billion in AUM, and the Investor Services business has $5.0 trillion in assets under custody (AUC).1 BBH’s culture of accountability fosters deep and lasting relationships built on commitment, adaptability and trust. The Firm is independent, selective and specialized by design.
BBH Private Banking’s mission is to be the pre-eminent provider of advice and capital to private business owners and people of substantial wealth to help them create, transition, preserve and grow their wealth. The Firm serves both corporate and private clients in the following products and services: Private Wealth Management, Corporate Advisory & Banking and Private Equity.
BBH operates a global business with 18 locations, including Beijing, Boston, Charlotte, Chicago, Denver, Dublin,
Grand Cayman, Hong Kong, Kraków, London, Luxembourg, Nashville, Jersey City, New York, Philadelphia, Tokyo, Wilmington and Zürich. For more information about BBH, please visit www.bbh.com.
BBH is a registered service mark of Brown Brothers Harriman & Co. in the United States and other countries.
About Katten Muchin Rosenman LLP
Katten is a full-service law firm with approximately 650 attorneys in locations across the United States and in London and Shanghai. Clients seeking sophisticated, high-value legal services turn to Katten for counsel locally, nationally and internationally. The firm’s core areas of practice are corporate, financial services, insolvency and restructuring, litigation, real estate, environmental, commercial finance, intellectual property, structured finance and securitization, and trusts and estates. Katten represents public and private companies in numerous industries, including a third of the Fortune 100, as well as a number of government and nonprofit organizations and individuals.
1Investment Management AUM includes $23.7 billion in assets managed on behalf of BBH’s Private Banking Business. AUM figures are as of 3/31/18. AUC is as of 12/31/17.