Two-year old middle market firm Snow Phipps Group has closed its first fund on $620 million (€456 million). The fund, which had an initial target of $500 million, has been in the market for at least 18 months, and reportedly held a first close early last year on $300 million.
SPG has done five deals thus far, including the buyout of frozen dessert chain Tasti D-lite, in which Tom Lee was a co-investor, and an investment in Laureate Education, which was purchased by a consortium including Kohlberg Kravis Roberts, Citi Private Equity, SAC Capital Management, Bregal Investments, Caisse de depot et placement du Quebec, Sterling Capital, Makena Capital, and Vulcan Capital.
SPG’s investment strategy relies on the expertise of operating partners. Thus far, the New York firm has operating partners in the following industries: specialty franchising; basic and process industries; apparel and luxury retail; media technology; specialty finance; IT services and telecommunications equipment; and industrial components.
The firm was founded by former Ripplewood managing director Ian Snow and Ogden Phipps, of the Phipps family group, in association with Guggenheim Partners. The firm’s name was originally Snow Phipps Guggenheim, but the Guggenheim name was dropped from its moniker “to avoid confusion with other Guggenheim branded private equity initiatives”, a Guggenheim spokesman said.
The financial services firm “maintains an interest” in SPG and has a passive role, he added.