NEW YORK, NY (September 25, 2012) – Lightyear Capital LLC (“Lightyear”), a private equity firm focused on financial services, announced today that it recently completed the final close of its third private equity fund, Lightyear Fund III, L.P. (“Fund III”), with $950 million in capital commitments, surpassing its target of $800 million. Lightyear’s second private equity fund, Lightyear Fund II, L.P., closed in 2007 with $850 million in capital commitments. Since inception, Lightyear has raised over $2.5 billion of private equity capital.
Fund III will pursue the same proven private equity approach and strategy that Lightyear has successfully employed over the past twelve years by focusing primarily on control investments in North America-based, middle-market companies across the financial services spectrum, including asset management, banks, brokerage, financial technology, insurance, and specialty finance. Lightyear seeks to identify growth trends by utilizing a top-down approach that consists of conducting comprehensive, in-house studies on specific industry sectors and sub-sectors. Lightyear targets companies where it can work with management to implement growth strategies aimed at enhancing company value including through acquisitions, recruiting, new products, and geographic expansion.
“The successful closing of our third fund marks an important milestone for Lightyear,” said Donald B. Marron, Chairman of Lightyear. “For over a decade, Lightyear has solidified its position as a leading private equity firm committed to the financial services industry.”
Fund III will seek to invest up to $150 million in companies with enterprise values up to $500 million. To date, Fund III has completed four investments, each in a separate financial services sector: Alegeus Technologies, LLC (financial technology), Clarion Partners LLC (asset management), Paradigm Management Services, LLC (insurance services), and Strategic Growth Bank Inc. (banks).
“We believe that the broad interest in our team stems from our consistent strategy of targeting a diversified set of investment opportunities in specialty growth areas within financial services,” added Mark F. Vassallo, Managing Partner of Lightyear. “Fund III is already approximately 30% invested, and we are actively evaluating multiple investment opportunities where we can partner with management teams to implement growth strategies.”
UBS Securities LLC acted as placement agent for Fund III and Simpson Thacher & Bartlett LLP acted as legal counsel.
About Lightyear Capital LLC
Lightyear Capital is a leading private equity firm making primarily control investments in North America-based, middle-market financial services companies. Based in New York, Lightyear, through its three affiliated private equity funds, has raised over $2.5 billion of capital and has completed investments across the financial services spectrum, including asset management, banks, brokerage, financial technology, insurance, and specialty finance. Lightyear brings unique strengths and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. The senior team of professionals averages over 25 years of financial services-related experience and includes Chris Casciato, Michael Doppelt, Stewart Gross, Thierry Ho, Donald Marron, Richard Sterne, and Mark Vassallo.
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