OceanSound Partners has secured $1.49 billion in total capital commitments for its second fund, enabling it to pursue investments in technology companies serving government and highly regulated enterprise end markets.
The New York-based private equity firm said Tuesday the oversubscribed OceanSound Partners Fund II closed above its target of $1 billion and an original hard cap of $1.3 billion.
In February 2022, OceanSound raised $780 million in capital for its inaugural fund.
The latest fund came months after closed a single-asset continuation fund worth approximately $1.15 billion.
Joe Benavides, managing partner and co-founder of OceanSound, said the closing of the second fund can be attributed to the firm’s all-weather investment strategy and execution.
“Since starting the firm shortly before the COVID-19 pandemic, we have raised two funds, closed a continuation fund, returned the majority of our inaugural fund’s capital to our investors, and closed nearly 50 transactions in challenging markets, especially for newer firms. We could not be more pleased with all we have accomplished and are confident in our execution as we build a scalable private equity business,” added Benavides.
Paul, Weiss, Rifkind, Wharton & Garrison acted as OceanSound’s legal counsel in the transaction.
OceanSound usually invests $75 million to $300 million through controlling ownership positions in middle-market companies operating in government and highly regulated markets. The private equity firm has invested in nine platform companies, which have finalized 38 add-on acquisitions. The firm’s portfolio companies generate more than $3.7 billion in combined revenue and employ over 12,000 people.
