Archean Capital Partners, a private equity firm that provides strategic anchor capital to newly formed private equity firms, announced the close of Archean Capital Fund II, L.P. at over $425m.
Archean was established in 2017 by Veritable, L.P. and Moelis Asset Management to provide initial limited partner capital and value-added support to emerging managers.
Across its first two funds, Archean has deployed $350m to four private equity managers, namely Petrichor Healthcare Capital Management, MiddleGround Capital, Equality Asset Management and Invictus Growth Partners. The firm is actively deploying capital and seeks seasoned investors who have both domain expertise and proven ability to execute their strategy.
Rob Lazaroff, Partner and Co-Portfolio Manager of Archean, said, “We are grateful to our Limited Partners and managers for their trust and support. We recognised a unique market opportunity to invest in first-time private equity funds and our success would not be possible without the shared vision of our investors and managers.”
“The Archean team has built something special,” said Tadd Wessel, the Founder and Managing Partner of Petrichor Healthcare Capital Management. “Archean has been a key partner in our success. The anchor commitment to our fund enabled immediate new investments and their strategic advice has been invaluable. I could not be more excited for the platform they are building and their future.”
John Stewart, a Founding Partner at MiddleGround Capital, said “our strategy requires a large team. Archean’s early commitment helped us build the right team to execute our strategy and accelerated our business plan. Partnering with Archean was one of the best decisions we made.”
“The challenges of raising a first-time fund are numerous. The strategic capital and support of Archean can help new firms distinguish themselves in a crowded fundraising market,” said Chris Keller, a Partner and Co-Portfolio Manager of Archean. “Our investors benefit from anchoring talented and entrepreneurial managers, who are highly incentivised to make their new firms successful.”