A new investment firm has been launched with offices in Dallas and New York, and relationships will be a key driver of its growth investment strategy. Robert covington, former partner of RedBird Capital Partners, today announced the launch of Braemont Capital.
The relationship-based company is launched with a team of “eight seasoned professionals” and will focus on defensive growth niches in corporate and consumer end markets, typically investing $ 25 million to $ 200 million of equity in companies. controlling or minority positions.
The company’s growth capital investments will be made in partnership with founders, families and entrepreneurs, according to the new company.
In a statement, Covington said that âthe experience and collective relationships of his team will help us identify, invest and develop great companies,â particularly in âniches where we have a unique vision and the ability to be value-added partners for our management teams. “
Experience at RedBird Capital and The Stephens Group
Prior to founding Braemont, Covington was a partner at RedBird Capital Partners, which Dallas Innovates introduced in July. He was previously Managing Director of The Stephens Group, a private equity firm investing capital on behalf of the Stephens family, one of the oldest private equity investors in the United States.
Previously, Covington was a partner at SSM Partners, a private equity firm specializing in growth-stage technologies, business services and consumer services firms. Prior to SSM, Robert was the Founder and CEO of Firstdoor, now part of Infor, where he ran a 70-person company that was one of the early business models of âSoftware as a Serviceâ.
Covington has more than the blessing of RedBird Capital in launching his new business – he has the âfull backingâ of its founder.
âWe are delighted that Braemont allows Robert to pursue his passion for investing in these targeted end markets,â said Gerry Cardinale, Founder and Managing Partner of RedBird Capital Partners, in the release. âHe has our full support in building a differentiated investment firm, and we look forward to working with him for the long term. ”
Braemont’s objective: “Invest to build”
Braemont plans to invest in “exceptional companies at inflection points of growth”. The company says its capital base will allow it to be flexible in structuring and holding investments in business start-ups to create “lasting value”.
The company claims to have already concluded a first closing of its first investment vehicle, “with substantial capital commitments from an institutional investor representing several leading endowments, family offices and individuals who are very much in phase. with the strategy of the company “.
Braemont will focus on both business B2B investments and consumer B2C growth products and services. On the business side, it will invest in âhorizontally and vertically oriented products and services that meet critical business needsâ. Its B2B targets will include vertical SaaS companies; technology-based services; insurance distribution and services; equipment services and the built environment; and communication infrastructure.
Among B2C companies, Braemont will focus on growth products and services based on technological, demographic or other key macro trends, including experiential hospitality; residential services; consumer and labor markets; consumer-oriented health technologies and services; and food / drink and consumables.
Change investments over time
In July, we wrote about how RedBird Capital often takes a âlong-term viewâ when it comes to investing. Covington appears to be planning the same in Braemont. Its “typical” $ 25 million to $ 200 million equity investments “can be scaled up over time,” the company says on its website, adding that “our capital base allows for periods of Flexible holding so we can prioritize and plan for long-term value. creation.”
The Braemont team
With founder and general partner Covington, the Braemont team includes a partner Jeff Volling, previously at Bessemer Investors, AE Investors, Madison Dearborn and Credit Suisse; May grass, who will be responsible for partnerships with entrepreneurs and family offices after stints at DH Capital, Signal Hill Capital, Wachovia and Deutsche Bank; Handsome Allen, a director of Braemont who was previously with JAM Capital Partners, RSE Ventures and Rizvi Traverse Management; Maximum green, a senior partner who was previously at UpEquity, RedBird Capital and Cain Brothers & Co.; Steve sims, CFA, Chief Operating Officer and Chief Compliance Officer of Braemont, previously at New Republic Partners, JP Morgan, The Stephens Group and Harris Williams & Co .; and chief of staff Jennifer peppard, formerly at Speedwell Capital, St. Mark’s School of Texas and The Winston School.
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