Greenbriar Equity Group LLC, the private-equity firm whose co-founders include two former executives at Goldman Sachs Group Inc., is seeking $1.25 billion for its next transportation-focused fund, said two people with knowledge of the matter.
Greenbriar Equity Fund III LP’s predecessor in 2007 raised $1 billion, surpassing its $750 million target.
Park Hill Group, the placement agent arm of Blackstone Group LP (BX:US), is helping market the fund, which will invest in transportation and related manufacturing, service, distribution and logistics companies. Rye, New York-based Greenbriar typically targets equity investments of $75 million to $125 million.
Fred Spar, a spokesman for the firm, declined to comment.
Greenbriar is one of the few private-equity firms devoted to transportation investments. There are 349 private-equity funds that include the industry as part of their focus, and about 30 of them list transportation deals as a significant part of their investment strategy, according to data from researcher Preqin Ltd.
“Industry specialization has been a pervasive trend for a number of years,” said Jake Elmhirst, a managing director at UBS Investment Bank in New York. Clients want to back managers “that are deep in industries because they are in a better position to identify the most attractive businesses before they are broadly marketed.”
The new fund will charge a 2 percent management fee and 20 percent of profits as carried interest, said one of the people asking not to be identified because the information is private.
The prior fund, Greenbriar Equity Fund II LP, was generating a 1.4 times multiple and 17 percent gross internal rate of return as of June 30, according to another person.
In one exit, the firm and its investment partners agreed in January to sell AmSafe Global Holdings Inc., a supplier of safety and restraint equipment for the aerospace industry including seat belts and airbags, to TransDigm Group Inc. for about $750 million.
Joel Beckman, Gerald Greenwald and Reginald Jones III helped found the firm in 1999. Beckman previously worked as a managing director at Goldman Sachs Group Inc., where he founded the bank’s global transportation group in 1987. Jones also worked at Goldman Sachs, where he was a managing director and group head of global transportation investment banking. Greenwald previously was chairman and chief executive officer of UAL Corp., then-parent of United Airlines.
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