Case Study

Sentinel Capital Partners VII

New Commitment

The company

Region: USA
Sector: Generalist
Type: Primary
Highlights:

                                £19.3m
Commitment

Private Equity Manager (GP)

Case study

About the company

Sentinel Capital Partners (“Sentinel”) is a US-based private equity manager focused on investing in mid-market businesses. The manager has raised US$11.2 billion of capital since inception and has a track record of growing businesses and creating value for investors. In November 2022, Sentinel Capital Partners VII raised $4.35 billion from new and existing investors, with strong demand resulting in a larger than targeted fund.

Pantheon has a long-standing relationship with Sentinel with PIP investing in one of Sentinel’s previous funds. Pantheon also holds four advisory board seats with the manager.

Sentinel’s investment rationale

Sentinel targets mid-market companies and the fund will consist of roughly 20–25 equity investments of $150 to $175 million each.

The manager has a strong focus on core industry sectors including: business services, consumer products/services, healthcare services, and industrials.

When assessing an investment opportunity, Sentinel is seeking:

A strong management team with a long-term vision and alignment of interest;
Market leadership in the product line, geography or technology;
A diversified customer base or product line; and
The opportunity to grow via M&A or organically.

Investment rationale

Sentinel aims to create value through operational improvements that lead to both revenue and profit growth, while accretive add-on acquisitions also drive growth.

Sentinel is a top-quartile performing manager with a proven and repeatable investment strategy.

The manager has a stable senior investment team, with a combined total average of over 20 years at Sentinel.

Maiden investment from Sentinel Capital Partners VII

In November 2022, Sentinel made its first investment from Sentinel Capital Partners VII into L2 Brands (“L2”). L2 is a designer, manufacturer and marketer of custom-decorated apparel and headwear for the collegiate, destination and leisure, and corporate markets. Since its founding in 1991, L2 has become a diversified business with a history of long-term profitable growth.

Sentinel’s experience and track record in this sector will enable L2 to accelerate its growth, both organically and through add-on acquisitions.

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