Siguler Guff Raises Record $3B for Small Buyout Strategy

Siguler Guff has raised more than $3 billion for its small-buyout strategy, completing the franchise’s largest fundraising as investors seek access to a fragmented segment of private equity with a broad supply of potential acquisition targets.

The total includes more than $2.3 billion for commingled vehicles, including Small Buyout Opportunities Fund VI, and nearly $700 million in separately managed accounts, according to the New York-based private-markets firm. Fund VI reportedly surpassed its original $2.2 billion target.

The strategy will invest through commitments to small and lower-middle-market private equity sponsors and selected direct equity co-investments. It targets established U.S. companies with less than $200 million in annual revenue and generally no more than $50 million in annual EBITDA.

Potential investments frequently include founder- or family-owned companies with long operating histories, resilient business models and leading positions in specialized markets.

“The small and lower middle market is a vital part of the U.S. economy,” said Kevin Kester, partner and co-managing partner of small business investments at Siguler Guff. He said supporting founder- and family-owned businesses as they professionalize and expand represents an enduring opportunity.

Since launching the strategy in 2006, Siguler Guff has committed more than $10 billion across over 1,000 U.S. companies. The firm has completed over 300 equity co-investments, served as the largest limited partner for more than 87 sponsors and backed 46 first-time funds.

Siguler Guff manages approximately $19 billion across its private-markets strategies.