Private equity firm OceanSound Partners announced Tuesday that it has successfully closed its second fund, OceanSound Partners Fund II LP, with $1.49 billion in investor commitments. The growth-focused firm, advised by Paul Weiss Rifkind Wharton & Garrison LLP, surpassed its original fundraising target of $1 billion and exceeded its hard cap of $1.3 billion.

OceanSound $1.5B Fund : Significant Growth from First Fund

OceanSound’s second fund nearly doubles the size of its predecessor, OceanSound Partners Fund LP, which closed in February 2022 after securing $780 million in investor commitments. The firm's ability to raise a larger fund in a challenging market environment demonstrates its strong investment track record and appeal to investors.

Managing partner Joe Benavides credited the success of the fund to OceanSound's “differentiated, all-weather investment strategy” and the firm's proven ability to deliver returns. He noted, "Since starting the firm shortly before the COVID-19 pandemic, we have raised two funds, closed a continuation fund, returned the majority of our inaugural fund’s capital to investors, and completed nearly 50 transactions."

Expanding Investment Focus

OceanSound specializes in investing in middle-market technology and technology-enabled services companies that serve government and highly regulated enterprise markets. The firm typically invests between $75 million and $300 million in companies with enterprise values of $150 million to $750 million, often taking controlling ownership positions.

With the close of Fund II, OceanSound now manages more than $3.7 billion in regulatory assets and oversees nine platform investments.

OceanSound $1.5B Fund : Broad Investor Support

OceanSound Fund II received support from a wide range of limited partners, including pension plans, endowments, family offices, and insurance companies. Nearly all investors from the firm’s inaugural fund returned for the second fund, demonstrating confidence in the firm’s strategy and performance. In addition to the $1.49 billion raised for Fund II, OceanSound has secured more than $2.15 billion in cumulative committed capital through affiliated co-investment vehicles and a single-asset continuation fund.

OceanSound $1.5B Fund : Legal and Financial Advisors

The Paul Weiss team advising OceanSound included partners Marco V. Masotti, Lindsey L. Wiersma, and Andrew C. Day. Their expertise helped OceanSound navigate the complexities of raising its second fund while exceeding its original targets.