NextGen Growth Partners (“NGP”), a Chicago-based private investment firm, has closed its second fund, NextGen Growth Partners Fund II, LP (“Fund II”), above its $100 million target, welcoming capital commitments from new institutional partners alongside continued support from its existing investors. Fund II continues the previous fund’s strategy of partnering with extremely talented entrepreneurs who, alongside the NGP investment team, execute on a proprietary search process focused on identifying and acquiring fundamentally sound businesses that are prime for their next phase of growth.
“It has been exciting to see our thesis prove out in Fund I and we remain encouraged by the value we continue to see in the part of the market where we are focused,” said Brian O’Connor, NGP Managing Partner. “We are operating in a dynamic market, but our disciplined approach and unique entrepreneur-led model have allowed us to continue to find value and partner with great businesses.”
NGP has become the premier partner in Entrepreneurship through Acquisition (“ETA”), an investment model whereby entrepreneur-operators take an active leadership role post-investment. ETA is rapidly growing in popularity for entrepreneurs, investors, and as a succession plan for business owners that are focused on preserving their legacy. O’Connor is an Adjunct Professor at University of Chicago Booth School of Business, where he co-teaches the highly popular Entrepreneurship Through Acquisition course.
A Fund II institutional investor commented, “We were keen on accessing the micro market given the value we believe exists there. However, doing so can be a challenge for a large asset manager. We were impressed with how NGP has been able to institutionalize the ETA model and provide unique access to an underserved part of the market.”
“I am thrilled with how the Fund II investor base took form,” said O’Connor. “We are truly grateful to have such an amazing group of strategic partners supporting us in our mission.”
The firm has acquired three businesses in Fund II already, and those businesses are led by early “Entrepreneurs in Residence” in the fund. According to Partner Jim Bland, “The pipeline is full, despite this challenging market. We believe there is an enduring need for our type of capital, strategic partnership, succession planning, and operational involvement in our part of the market, good times and bad.”
Kirkland and Ellis provided NGP with legal counsel and Apex Group is the Fund Administrator.
For more information, please contact the team at email@example.com.
About NextGen Growth Partners
Headquartered in the West Loop neighborhood of Chicago, NextGen Growth Partners is a private equity firm that partners with the best and brightest entrepreneurial talent to acquire, operate and grow lower middle market businesses across a variety of industries. The team has a strong track record of creating value through growth and operational improvement in middle market businesses.