Soros spinout closes on $1.3bn

TowerBrook Capital Partners has held a $1.3 billion final close on its inaugural fund. The TowerBrook team spun out of Soros Asset Management in April of last year.

Almost a year after TowerBrook Capital Partners spun out of the George Soros-led Soros Asset Management, the firm has held a $1.3 billion (€1.1 billion) final close on its debut fund, TowerBrook Investors II.

The successful fundraise is not surprising considering the group’s performance under Soros. According to the California Public Employees’ Retirement System, which was an investor in the team’s 2001 fund, the vehicle has already returned 2.5x its capital and is showing an internal rate of return of roughly 40 percent.

Neal Moszkowski, co-chief executive, TowerBrook Capital Partners

TowerBrook maintains offices in London and New York, and has bolstered its staff in recent months with hirings of Elwin Capital Partners co-founder Winston Ginsberg and Andrew Rolfe, who had previously headed the international division of clothing retailer The Gap.

Soros’ spinout of the private equity team came after the billionaire announced in 2004 that he had intended to pass off a greater control of his firm to his sons, Robert and Jonathan, and pare back the firm’s activity in areas outside of hedge fund management.

Soros, at the time, also noted that the firm would cut loose the real estate and credit divisions, in addition to the buyout and venture arms. A second Soros spinout, life sciences venture group Aisling Capital, in January held a final close on its first independent fund, corralling $550 million in commitments.

TowerBrook, which is headed by co-chief executives Neal Moszkowski and Ramez Sousou, has made past investments in Swiss cable company Cablecom, Florida-based managed care provider WellCare Health Plans, Tennessee medical transcription company Spheris and German latex producer PolymerLatex, among others.

The firm’s second fund includes limited partners such as AIG Private Equity.