Acacia Partners Raises Fund III
September 13, 2023
Acacia Partners, LLC (“Acacia”), an Austin, TX based private investment firm that invests in family-owned or owner-operated companies, announced that it has raised its third committed capital fund (“Fund III”). Similar to Acacia’s Fund II, Fund III’s structure allows Acacia to maintain its unique advantages compared to traditional private equity, including the ability to deploy indefinite capital. Acacia achieved its fundraising goal for Fund III and hit its hard cap.
Acacia will continue the investment strategy it has employed for the last twelve years of partnering with family-owned or owner-operated businesses to recapitalize companies with strong market positions and exceptional growth potential. Acacia’s investment mandate includes both majority and minority recapitalizations of businesses with enterprise values between $50-$250 million. The firm’s emphasis on maintaining a strong balance sheet and preserving the existing culture makes Acacia an attractive partner for owners who are looking to roll a significant equity position back into their business and are seeking an alternative to the traditional private equity model. The team will continue its strategy of being preferred partners to owners who value Acacia’s differentiated approach.
“We are very fortunate for our investors who continue to show their support of our unique platform. Even in a difficult fundraising environment, we were able to quickly reach our hard cap for Fund III. We remain committed to our differentiated approach of prioritizing being best in class partners,” said Brad Johl, Acacia’s founder. “After a summer of working with our newest partners at A&A Global, we look forward to forming a new partnership with our next platform company.”
Acacia has made six platform investments to date and is aggressively pursuing its next platform.
Acacia’s Differentiated Approach
- Patient, long-term capital aligned with the company’s objectives.
- Conservative use of debt. We prefer to generate investment returns through growth and operational excellence rather than financial engineering. We are committed to using a maximum of 2x debt to EBITDA to close an investment.
- Commitment to maintaining the company culture post-closing. We hold a deep appreciation for the unique characteristics that give family businesses a competitive advantage.
- Concerted effort to make the due diligence process as easy and transparent as possible. We have closed 100% of our LOIs on time and at our LOI price.
- Access to a vast investor network to drive valuable strategic introductions.
- Always doing what we say we are going to do. Our reputation is our greatest asset.
- Flexibility in our level of involvement post-closing, with the goal of helping the business grow and not be an impediment to management.