Greenhill closes $875m fund

The publicly traded investment and merchant banking firm has announced a final close on $875 million for its second private equity outing, with $136m of the total coming from the firm’s managing directors and professionals.

New York-based private equity firm Greenhill & Company has closed its second private equity fund on $875 million (€710 million), more than doubling the total raised for the firm’s debut vehicle. The fund’s target was $700 million and fundraising began in December. 

Greenhill Capital Partners II will continue the strategy of the first fund, which invested in mid-market telecommunications, energy and financial services companies. The fund has a five-year investment period and has already made $101 million in investments in four companies.

Greenhill has committed $88 million, or 10 percent, towards the fund total. Managing directors and professionals have committed an additional $136 million, or 16 percent, of the fund’s total capital. The firm also contributed about around 25 percent of the capital for the first fund.

Remaining limited partners include institutional investors, wealthy families and qualified corporate executives. In an interview in April at the time of the first close, Robert Niehaus, chairman of Greenhill Capital Partners, said about 90 percent of the LPs from the first fund returned for the second offering. 

Robert Greenhill, founder, chairman and CFO, Greenhill & Company

The first Greenhill fund closed in 2000 at $423 million. Of that, $264 million remains under management in 19 companies and $56 million has not been drawn upon. 

The firm was founded in 1996 by Robert Greenhill, formerly president of investment banking at Morgan Stanley, and has offices in London, Frankfurt and Dallas. Shares of the investment bank are traded on the New York Stock Exchange.