CCMP Capital, the former buyouts team and growth equity of JPMorgans Partners, has closed its initial independent fund with over $3.5 billion in capital. Therefore, peHUB has five questions to the CCMP CEO and President Stephen Murray.
1. it’s been over two years since to work as independent sources, even though your actions did not occur this past year. What, has evolved or changed since the concerning your investment strategies?
Murray: The older JPMorgan Partners’ structure had broad diversification with a large geographical footprint and many assets. CCMP Capital’s investment size was closer to $25 million. Therefore, the new size has grown to over $200 million. For them to increase significantly, they have eliminated mezzanine and capital venture costs from their portfolio. Co-invests were entirely excluded from their work. The company wants to develop their deals to the end.
2. You said that CCMP is planning to hire operators. What is the status of this information?
Murray: This plan is underway. According to our advisers, this program will make a great contribution towards the future of CCMP Capital.
3. Let me ask you about your team. When did you take over from Jeff Walker? Why did you take over from him?
Murray: This action occurred in January this year. CCMP Capital issued a statement on our website that we are looking for an operating partner. However, we did not advertise it on the press release. For the last few years, the transition of the matter reflected how the business was transforming. Jeff focused on high-level relationships and strategy. On the other hand, I am more focused on execution and origination on investment. Both of us form the investment committee with other partners.
4. You said that the fundraising was successful. However, you hit slightly below the $3.5 billion target. Can you say something concerning that score?
Murray: our early debate was about targeting the $3.25 billion instead of $3.5 billion. We fell short of the goal because time was not on our side. Outside investors brought in over 80 percent of the funds collected. Therefore, we had t develop a huge number of relationships to achieve our goals.
5. This was the first fundraising effort by the company. Can you talk about the process?
Murray: We faced many fundamental questions. We talked about how we would source bills. However, we relied on the ban for many things. There were many contravening things concerning the bank. Our track record shows our good strategy.