In the News

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By: Taina Rosa

June 7, 2011

Peterson Partners Closes $50M Fund 

Peterson Partners LP, one of JetBlue Airways Corp.’s original investors, has closed its sixth private equity fund with $50 million in commitments, said managing partner Dan Peterson. “We’ll probably keep the fund open and cap it off at $60 million since we’re oversubscribed,” he added.

The Salt Lake City-based shop invests between $2 million and $10 million in equity per transaction, Peterson explained. He added that the firm targets companies with annual revenues in the $10 million to $50 million range and Ebitda of $2 million to $10 million. The firm takes both majority and minority stakes and often takes seats on portfolio companies’ boards.

“We back management teams and help by providing companies with growth capital,” the managing partner said.

Peterson said that the firm, which has more than $400 million in committed capital, does not focus on specific industries or geographies. In fact, while most of the firm’s investments have been in companies in the U.S., it has also invested in companies based in Brazil and India.

This sixth fund is much smaller than the shop’s previous one, which closed with $120 million in May 2008. Peterson said that the new fund is smaller because it only targeted individual investors. “We changed our approach. This time we wanted to limit the fund to people who are successful entrepreneurs,” Peterson said. The previous fund’s investors included David Neeleman, founder of JetBlue; Dave Checketts, owner of the Real Salt Lake Major League Soccer team; the Romney Family Investment Fund; and the principals of the shop.

The previous fund has been mostly invested, Peterson said, adding that the shop is already eyeing exits for some portfolio companies. “We have a number of exits scheduled for this year and next,” he said.

Peterson explained that he expects most exits to involve sales to strategics. However, he also said that the shop plans to exit one of its companies via an initial public offering.

Among the shop’s portfolio companies are Azul Linhas Aéreas Brasileiras SA, a Brazilian low-cost airline established by the founder of JetBlue; Provo, Utah-based Vivint Inc., a home security company that operates in 37 states, Canada and Puerto Rico; Coimbatore, India-based garment exporter K.P.R. Mill Ltd.; and Kansas City, Mo.-based technology protection services company Asurion.