Huron Capital Partners has closed on a $500 million investment fund, allowing the downtown Detroit-based private-equity firm to hire six people over the last year.
The 20-person firm now takes up most of the 27th floor of the Guardian Building. It's new hires are mostly investment professionals. A large quantity of them earned their MBAs locally.
"The University of Michigan is educating more of our team than any other school," says Michael Beauregard
, senior partner at Huron Capital Partners
Huron Capital Partners
(Michigan's largest private-equity firm) invests $20-$50 million in companies with high growth ceilings in need of fresh capital, such as corporate spinoffs and family business succession. It got its start in 1999 with a $72 million fund. Since then it has raised two more funds that have been deployed worth $185 million and $385 million.
It now has a controlling stake in 61 companies. Three quarters of those are in the U.S. The remainder are Canadian-based. Three of those 61 companies were locally based, including Quest Specailty Chemicals
, Matrix System Automotive Solutions and Michigan Orthopedic Services
. Huron Capital Partners exited all three firms. Huron Capital Partners was named Private Equity Firm of the Year for 2010 by Mergers & Acquisitions
, the pre-eminent magazine for private equity, for its Ross Education
deal, which produced 18.7 times its original investment and a 76-percent internal rate of return.
That deal/award helped set the stage for Huron Capital Partners' fourth fund. The recently closed investment vehicle is worth $500 and received some significant investments from institutional investors, including $15 million from the University of Michigan's Endowment Fund. Beauregard, a member of the investment committee at Huron Capital Partners, expects this latest fund to invest in about a dozen platforms which will trickle down into 20-25 companies.
"I expect there will be a handful of companies based in the area that we will invest in and help them grow their base here," Beauregard says.
Source: Michael Beauregard, senior partner and member of the investment committee for Huron Capital Partners
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.