Crescendo Capital Partners (CCP) announces the closing of its first outside fund. The capital was committed by ~15 UHNWs (ultra-high net worth’s) and will be deployed over the next 3-4 years
As CCP pursues some deals beyond the historical $5M-$10M earnings level, this fund will be particularly useful. Most of the LP’s have extensive capacity to upsize their commitments.
CCP is particularly pleased that the LP constituency includes many personal relationships, including founders/owners of many firms in which Crescendo invested.
Unlike most funds, the CCP fund is a “top-off” vehicle, in that the first several million dollars of capital in every deal will be invested by Crescendo principals. In all Crescendo deals, every investment professional writes an out-of-pocket check. Interests are perfectly aligned as Crescendo principals gain the vast majority of their economic returns from their directly invested capital, not the management of third-party capital.
Founding partner, CL Turner III, said, “The new fund represents an inflection point in Crescendo’s development; we will always manage 3rd party capital as if it is our own.” Partner Mike MacRitchie said, “Combined with the substantial committed capital from the Crescendo team, we have significant dry powder available to deploy in founder-owned, lower-middle-market businesses.
Morrison Cohen served as legal advisor with respect to the fund formation.