Fund of Funds
The BBTCP Fund of Funds is a dedicated investment vehicle focused on managers in the lower middle-market buyout segment of private equity in the US. We define lower middle market funds as those with commitments of $750 million or less. We believe this segment of the private equity market offers a compelling investment proposition for investors. We target fund managers with sector focus and those with differentiated business strategies. Ultimately, we believe that manager selection is paramount and that consistent success requires access, independent thought, solid relationships and experience that the Fund of Funds’ team has developed and maintained over many years of work in the industry.
The Fund of Funds targets both established and emerging managers. We believe that past performance can be an indicator of future results in private equity and that this business is learned over time. Funds with superior returns and low rates of loss compared to their peers are most attractive. For emerging managers we believe that the principals need to have worked in private equity and preferably together. Private equity operates under partnership structures and an effective, functional partnership is critical to success.
The Fund of Funds seeks long-term, value-added relationships with its general partners and works to enhance the capital provided through limited partnership commitments by providing mezzanine and equity co-investment. BB&T Capital Partners is an active co-investor and has consistently provided patient junior capital support to our fund managers.
