May 19, 2009 – It was reported yesterday by Dow Jones that Prophet Equity has closed on $200 million of a targeted $250 million for its debut fund.
“With a billion dollars of purchasing power for control equity investments in target companies, Prophet Equity is well equipped to support dramatic value creation in companies not only with the necessary equity capital, but also with our demonstrated strategic and operational know-how. Our professionals and our methods for improving the performance of strategically strong, but underperforming firms in the lower and middle markets are second to none,” said Ross Gatlin, CEO and Managing Partner.
Dow Jones reports that the principals of Prophet have committed $20 million of capital to the new fund and will increase that commitment to as much as $50 million depending on the final size of the fund. Prophet also has a unique carried interest allocation policy that allocates carry amongst all partners and employees of the firm.
Prophet Equity makes control investments in strategically strong, asset-intensive, underperforming companies in the lower and middle market. The firm seeks to make equity investments of $5 to $50 million in companies with annual revenues of up to $500 million and enterprise values of $10 to $50 million. Sectors of interest include financial services; healthcare; manufacturing; natural resources and energy; technology related; automotive & transportation; business and consumer services; consumer products; defense & aerospace; and distribution. The firm is located in Southlake, TX (www.prophetequity.com).
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