OpenGate Capital has closed its first private equity fund to new investors after raising $305 million in investor commitments. The private equity firm has already made four investments from the fund, with a fifth expected to close before year-end.
Los Angeles-based OpenGate Capital targets lower-middle-market companies, and cross-border and corporate carve-out opportunities. Before raising its fund, OpenGate Capital Partners I, the firm made investments only through its own partners’ capital. All investors in the new fund are institutions. The firm was founded in 2005 and has executed more than 40 transactions, including corporate divestitures, turnaround acquisitions, industry consolidations and other special situation investments. Its four investments from the fund, all in 2016, have been in Power Partners Inc., Energi Fenestrations Solutions, Bois & Matériaux and Alfatherm. The fifth investment is planned in Umicore Zinc Chemicals.
The Alfatherm deal was closed in June. Alfatherm, based in Varese, Italy, is the fourth-largest manufacturer of polyvinyl chloride, or PVC, film in Europe. The company makes PVC used in decorations, capsules and sleeves, packaging and adhesive tapes. Stationery Energi Fenestrations Solutions, formerly the window and door division of Royal Building Products, was acquired from Axiall Corporation (NYSE: AXLL) in April. Energi makes vinyl window and patio door profiles, vinyl shutters and other vinyl products. OpenGate purchased another PVC business, Benvic Europe, in 2014. In recent related deals, Sabert Corp., a food packaging maker, acquired Mullinix Packages Inc., which makes plastic packaging, from the Mason Wells PE firm in July. In June, Westlake Chemical Corp. (NYSE: WLK) announced it would acquire Axiall Corp., creating the second-largest North American producer of vinyl used in pipe, siding and decks. And in 2015, Pamplona Capital Management’s Charter Nex Films Inc., a plastic film manufacturer, acquired Optimum Plastics Inc., another maker of plastic film, from Huron Capital Partners LLC.
UBS Private Funds Group was the private placement agent for the OpenGate fund and Kirkland & Ellis, was legal counsel.