Santa Monica-based private equity firm Ocean Avenue Capital has oversubscribed its fifth flagship fund, bringing in $600 million in capital commitments.
On Feb. 27 the lower middle-market firm announced it nearly doubled the size of its previous Fund IV, which closed $350 million nearly four years ago.
The institutional investors participating in this round include endowments, corporate and pension plans, insurance companies and family offices across the world.
“We are grateful for the broad support we received from our existing investor base, and excited to be adding a roster of highly experienced institutional investors in Fund V, especially in what has been a challenging fundraising environment for private equity fund managers,” said Jeff Ennis, a co-founder and partner at Ocean Avenue.
According to Jacques Youssefmir, one of four co-founders and partners at the firm, Ocean Avenue has fully invested out of its previous fund and now deploys capital from Fund V. While the company focuses on equity stakes in companies with $5 to $50 million in revenue, Ocean Avenue also participates in special situations investments.
Ocean Avenue does not detail specific portfolio investments but says it has invested in over 130 lower middle markets since the firm’s founding in 2010. The firm did make headlines in 2022 when it joined former NFL quarterback Eli Manning’s private equity firm Brand Velocity Group in a deal to acquire a youth sports uniform maker.
Ocean Avenue joins only a handful of local, lower middle market firms growing their flagship fund sizes amid a stringent capital raising environment tightened by high interest rates.
While many firms around the $1 billion asset range sit on funds with two-to-three-year vintages, Ocean Avenue joins Varsity Healthcare and Angeles Equity Partners as a Los Angeles firm with a recent capital raise.
“We believe that our unique approach to investing in the very low end of the middle market, which capitalizes on changing trends in the industry, resonated with limited partners in an otherwise very crowded market,” said Duran Curis, an Ocean Avenue cofounder and partner.
After the Fund V close, Ocean Avenue now has $1.9 billion in total assets.
