Dorsey advised Peninsula Capital Partners L.L.C. of Southfield, Michigan, on the final closing of its eighth investment partnership, Peninsula Fund VIII L.P. (the “Fund” or “Fund VIII”) at $400 million.
The Fund continues the strategy refined over the course of seven predecessor partnerships of pursuing mezzanine and equity investments in middle-market companies in connection with non-sponsored and independently sponsored transactions, as either a control or non-control investor.
Peninsula Capital’s Managing Partner, Scott Reilly, commented on their experience working with the Dorsey team. “Raising a new partnership is always a unique challenge as market conditions and legal structures are constantly evolving. As fund managers typically raise a new partnership only every 3-4 years, having a legal advisor that is on top of prevailing trends is essential for a successful fund-raise. The team at Dorsey is the best in the industry at this, with deep connections in both the General Partner and Limited Partner spheres. Their market knowledge and expertise ensured we went to market with state-of-the-art offering materials and were vital in navigating highly technical investor negotiations.”
The successful fundraising efforts for Fund VIII occurred during an especially challenging period for capital formation for private debt and equity funds due to widespread capital allocation constraints among institutional investors caused by historically low distribution levels from PE funds in recent years.
Since its founding in 1995, Peninsula Capital has raised approximately $2.4 billion across its eight funds, investing about $2.1 billion in over 150 portfolio platforms.
“On behalf of the entire Dorsey team, it was a privilege serving as legal counsel for Peninsula’s successful fundraise of Fund VIII,” said Brad Pugh, Dorsey Partner and Co-Head of the Investment Management and Private Funds group. The Dorsey team was led by partners Larry Makel and Brad Pugh and included partners and associates across a number of Dorsey’s offices.