Press Room

Contact 817.898.1500

Press Room

August 06, 2008


Texas Startup Staffs Up for 1st Close

Prophet Equity, launched late last year by turnaround specialist Ross Gatlin, has rounded out its investment team and is nearing a first close on its debut fund.

Last July, Gatlin left Insight Equity, a Dallas turnaround firm he co-founded in 2002, to start his new operation in Southlake, Texas.

Immediately after forming, the group began laying plans to raise $250 million for the firmís debut fund. Prophet is shooting for a late-September first close on at least $100 million of commitments. The firmís principals are likely to commit around 20% of the total equity. Over the past several months, a handful of other executives have joined Prophet. On board now: senior advisor Sam Metz, who worked with Gatlin at Insight; vice president Brian Hegi, who was a vice president with AlixPartnersí performance-improvement practice.

Prophet appears to have already lined up some deals for the fund, which will aim for a 30% internal rate of return. It will pursue buyouts of small and mid-size companies that are considered under-performing. It will also seek to capitalize on financial distress stemming from the credit crunch, as well as sales through bankruptcy proceedings. The firm plans to play a major role in improving companiesí operations.

Featured in Private Equity Insider, August 6, 2008

Edited by webmaster

Back to Press Room