#USA #Detroit #Investment #Speyside Equity #Fund II

Speyside Equity Successfully Closes $300 Million on Oversubscribed Fund II

In a notable achievement, Speyside Equity Advisers LLC has recently announced the final close of its second investment vehicle, Speyside Equity Fund II, hitting the hard cap of $300 million in total capital commitments. This amount not only surpasses their initial fundraising target but also indicates robust investor demand, with commitments exceeding the set limit.

This fund marks the third investment initiative by Speyside, following the successful deployment of Fund I and the Speyside Equity Opportunity Fund. The oversubscription of Fund II reflects the continuing strong support from existing limited partners while also welcoming contributions from a diverse range of new global investors.

Investment Strategy and Focus

Fund II has already made noteworthy investments in portfolio companies such as Reed Minerals and GSC Technologies, aimed at executing a Fix and Build Strategy within the manufacturing sector. Led by a seasoned Investment Committee comprised of Eric Wiklendt, Nick Lardo, and Kevin Daugherty, Speyside focuses on acquiring underperforming manufacturing businesses within the lower middle market. Their strategy involves enhancing these businesses and stimulating growth through a combination of organic and acquisition-based methods.

Using Speyside's proprietary Portfolio Value Creation System (PVCS), the team aims to improve EBITDA margins to align with industry standards. This structured, phased approach leverages a specific set of tools, frameworks, and real-world examples derived from over two decades of experience by its partners in managing and improving manufacturing businesses.

Lessons Learned and Future Direction

The firm has drawn valuable insights from their previous experiences with Fund I and the Opportunity Fund, leading to strategic refinements aimed at ensuring maximum impact with their investments. Although they are open to bolt-on acquisitions globally, Fund II is specifically concentrated on platform investments within North America.

Speyside’s structured and transformational control approach aims to increase returns on effort, allowing lower leverage deal structures, thereby enabling management teams to concentrate on established transformation plans. This refined strategy aims to deliver enhanced risk-adjusted returns for investors. Eric Wiklendt noted, “Implementing our refined strategy feels like removing a weight from around our ankles—now we can truly swim. We are committed to a process-driven approach to create scalable, repeatable value.”

Global Investor Support

The global backing for Fund II has been impressive, attracting a diverse array of institutional investors, including family offices, endowments, foundations, private investment firms, registered investment advisors (RIAs), and funds of funds. Nick Lardo expressed excitement over the caliber of their investor portfolio, stating that the current fundraising climate highlights a positive industry assessment of Speyside's strategies within the investment community.

About Speyside Equity

Founded in Detroit, Speyside Equity is a private equity firm that primarily targets middle-market buyout transactions within the manufacturing and value-added distribution sectors. Their targeted investments often involve complexities related to balance sheets, regulatory issues, labor dynamics, and other transactional elements. The firm is known for its creative transaction structures, actively engaging in carve-outs from larger corporations, industry consolidations, and special situations such as bankruptcies and workouts. With an impressive track record of 38 investments, Speyside aims to create value through an operational approach focused on sustainable growth.

For more information, visit their official website www.speysideequity.com.