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First close on second Greenhill fund

The publicly traded investment banking firm has announced a first close on $558 million for its second private equity fund, with $135 million coming from the firm’s managing directors and professionals.

New York-based private equity firm Greenhill & Co has announced the initial closing at $558 (€435 million) of its second private equity fund. The fund’s target is $700 million and fundraising began in December.

Greenhill Capital Partners II will continue the strategy of the first fund, which invests in mid-market telecommunications, energy and financial services companies. The fund has an investment period of five years.

“We have a very active deal pipeline in all three sectors,” said Robert Niehaus, the chairman of Greenhill Capital Partners, adding that the name-recognition of parent company Greenhill helps when working with mid-market entrepreneurs. Shares of the investment bank are traded on the New York Stock Exchange.

Niehaus also said that around 90 percent of the investors from the first fund returned to the second offering. Limited partners include qualified corporate executives, wealthy families and institutional investors.   

The firm also contributed $85 million to the fund, while $135 million was committed by its managing directors and more than 110 professionals. Greenhill also contributed about a quarter of the capital for the first fund.  

Greenhill’s first private equity fund closed in June 2000 at $423 million. The firm was founded in 1996 by Robert Greenhill, formerly president of investment banking at Morgan Stanley.