Private equity fundraising serves as a scorecard. Limited partners vote with their capital—committing to firms with strong track records while avoiding those with disappointing performance.
Waud Capital Partners has demonstrated consistent fundraising success over three decades. Fund sizes increased substantially, reflecting investor confidence in the firm’s strategy and returns.
Fund III: $487 Million Raised in 2011
Waud Capital Partners closed Fund III at $487 million in 2011. This represented the firm’s third institutional fund, following the initial 1998 fund and a second fund raised several years later.
Fund III provided capital to build several successful platforms. Investments from this vintage included healthcare consolidations and software companies that the firm would later exit at substantial valuations.
Reeve B. Waud personally invested in the fund alongside institutional limited partners. His capital commitments across the first four funds totaled approximately $200 million. This alignment of interests demonstrates conviction in the investment strategy and aligns his economic incentives with those of outside investors.
Fund IV: More Than Doubling to $1.05 Billion
In 2016, Waud Capital closed Fund IV at $1.05 billion—more than double the size of Fund III. This increase reflected strong performance from prior funds and institutional investor demand for larger commitments.
A fund size doubling represents significant growth. Limited partners must believe the firm can deploy additional capital productively without diluting returns. Larger funds require larger deal sizes, which can push firms into more competitive segments or force them to relax investment criteria.
Waud Capital maintained its middle-market focus despite the larger fund. The firm continued targeting control investments of $75 million to $200 million in equity. Rather than pursuing mega-deals, Waud Capital deployed the larger fund across more transactions and larger follow-on investments in existing platforms.
Fund IV investments included GI Alliance, which the firm formed in 2018 and exited in 2022 at a $2.2 billion valuation. The fund also backed iOFFICE, which Waud Capital sold to Thoma Bravo in 2021 after quintupling revenues during its ownership.
Managing $4.6 Billion as of Year-End 2022
By December 31, 2022, Waud Capital Partners managed approximately $4.6 billion in assets. This figure includes capital across multiple fund vintages, as older funds remain in harvest mode while newer funds deploy capital into new investments.
Assets under management growth tracked the firm’s organizational expansion. Reeve Waud founded the firm in 1993 as a one-person operation. By the 30th anniversary in 2023, the team had grown to approximately 70 professionals.
Larger teams enable more investment activity. Sourcing deals, conducting due diligence, closing transactions, and managing portfolio companies requires specialized expertise. Waud Capital built dedicated teams for healthcare investing, software/technology investing, capital markets, human capital, and operations.
The firm relocated from Lake Forest to downtown Chicago in 2009, reflecting its growth and facilitating recruitment. Urban office locations attract investment professionals who prefer city environments and easier access to portfolio companies, service providers, and business contacts.
Investor Confidence Driving Successive Fund Increases
Fund size progression indicates investor satisfaction. Limited partners typically commit to new funds only after reviewing prior fund performance, evaluating the investment team, and assessing market positioning.
Waud Capital’s performance metrics support continued fundraising. For realized investments, the firm reports average revenue growth exceeding 400% during its ownership period. Portfolio companies average more than 10 add-on acquisitions per healthcare platform investment.
Notable exits include Acadia Healthcare’s 2011 IPO, GI Alliance’s 2022 recapitalization at $2.2 billion, and iOFFICE’s 2021 sale to Thoma Bravo. These outcomes demonstrate the firm’s ability to build businesses across different subsectors and exit at attractive valuations.
Reeve B. Waud has led or overseen more than 500 company acquisitions throughout his career. This acquisition experience, developed over 32 years, informs how Waud Capital structures platform investments, executes add-on strategies, and manages integration processes.
The firm has completed more than 460 investments since its 1993 founding. This volume reflects both platform investments and the numerous add-on acquisitions that characterize Waud Capital’s buy-and-build approach.
