Blue Sage Capital, an Austin, Texas-based private investment firm, announced today the final closing of its oversubscribed third fund. Capital commitments totaled $300 million, well above the $250 million fund target and $150 million prior fund size. Blue Sage enjoyed exceptional demand from existing investors as well as new limited partners despite the current pandemic-driven economic turmoil. Blue Sage’s investor base is comprised of a diverse group of limited partners including university endowments, charitable foundations, pension funds, financial institutions, prominent family offices and the Blue Sage team.
Blue Sage is led by founding members, Peter Huff and Jim McBride, along with two additional partners, Jonathan Pearce and Eric Weiner. Founded in 2002, the firm has a team of ten investment professionals and three administrative professionals. Peter Huff, Co-Founder and Managing Member said that Blue Sage is “fortunate to have attracted such a strong team that has worked together to consistently produce outstanding returns for our investors over many years. We are extremely appreciative of the robust support provided to us by our limited partners during these trying times.”
In its first fund, Blue Sage invested in thirteen companies across its targeted industry verticals – environmental solutions, niche manufacturing, and specialty services. According to information published by a state plan investor, Blue Sage Capital produced the greatest absolute amount of realized returns for the investor since the inception of their private equity program in 1993, with a net multiple on all investments of approximately 4.0 times their invested capital. The firm’s second fund has made investments in nine platform businesses and already produced two very successful exits.
The firm’s third fund will continue Blue Sage’s proven strategy of partnering with founder-owned businesses with $4 million to $15 million of cash flow, where Blue Sage can add value by operationally transforming companies with a hands-on approach. Blue Sage has already completed two investments out of the new fund, including one that occurred after the onset of the current pandemic. Kirkland & Ellis LLP served as legal counsel for Blue Sage.
For questions or inquiries, please contact Peter Huff at 512-536-1900 or Peter.Huff@bluesage.com.