Avant Global, LLC (“AG”) a leading relationship-driven venture capital investment, business advisory and private equity fund management firm,has announced a partnership with White Field Capital Partners (“WFCP”) to launch a $200 Million private equity growth fund. White Field AG Growth Fund IV will be focused on investment into healthcare and market-adjacent businesses within the lower-middle market arena.
Capital will predominately be invested as transformational capital into companies within the U.S. in order to complete strategic acquisitions, purchase assets, or fulfill contracts to rapidly and significantly increase EBITDA. The Fund intends to seek investments that can experience purchase price multiple arbitrage upon exit, as management sees the lower-middle market as one of the few remaining arbitrage opportunities left within the private equity industry.
White Field Capital Partners and Avant Global have committed an initial investment of $2 million into the Fund and will jointly serve as the General Partners. The Fund management will be headquartered in Palmas del Mar, Puerto Rico.
As a General Partner, Avant Global will provide the Fund with access to capital, deal sourcing and talent from its vast network of trusted relationships. "In addition to a truly global network of capital sources, we have cultivated a significant pipeline of opportunities in the healthcare and related markets that are either undervalued or do not have the resources to effectively develop their valuable intellectual property. Coupled with an extensive network of talented executives, we see a clear path forward to put capital to work inside carefully selected portfolio investments and generate excellent returns," said Alan W. Wilson, Managing Partner at AG Fund Partners.
WFCP are experienced, active investors who will manage the Fund’s investment process and portfolio companies.The group has followed a disciplined, hands-on approach in order to generate above-market returns. Through this investment approach, WFCP has generated top-tier returns for their investors across three funds since its inception in 2010. “We have access to many companies that have a stable business model in a solid or growing industry but lack the depth of operational experience and capital to scale and reach their fullest potential. These companies are overlooked by many private equity firms due to the amount of effort required to improve them relative to the size of the investment. Because we are operators at our core, we welcome those deals and can acquire a meaningful stake in the company at below-market value,” says Mark Sawyer, Managing Partner of WFCP.
Fund IV will focus on lower middle-market companies generating EBITDA between $2-10 million range. The Fund will target companies operating in a growing market who possess a defensible offering, sustainable business model, focused strategy and—most important—alignment of leadership. Since the Fund’s investment thesis is heavily based upon the strength of the entrepreneur, emphasis will be placed on the leadership of acquisition targets. Continued alignment with leadership is key, so the Fund intends to incorporate mechanisms to allow leadership to recapture equity through achievement-based thresholds.