Prime One Capital bucks market to beat fundraising target

Prime One Capital, a Cleveland-based private equity firm, has joined an elite band after defying poor fundraising conditions to raise a bigger-than-expected fund, in a sign of improving investor sentiment towards well-established private equity groups.

A placement agent unconnected to Prime One Capital said the buyout firm’s success despite the tough fundraising environment reflected the quality of assets in the firm's portfolio and its status in the market.

He added that by raising more than its target Prime One Capital had established itself as part of a small group, as the next generation of firms leading the industry.

News of the bigger-than-expected fund comes against a backdrop of difficult fundraising conditions for private equity. The last three months of 2009 marked the worst quarter for fundraising for more than six years.

It is the largest private equity funds that have been hardest hit since the onset of the credit crunch. Prime One Capital has also been one of the best firms for returning capital since the credit crunch hit in summer 2007, notching up 16 portfolio company exits in 18 months.