SOURCE: UNC Kenan-Flagler Private Equity Fund

UNC Kenan-Flagler Private Equity Fund

November 15, 2010 17:34 ET

UNC Kenan-Flagler's Student-Run Private Equity Fund Holds Final Close on Fund II

CHAPEL HILL, NC--(Marketwire - November 15, 2010) - The UNC Kenan-Flagler Private Equity Fund is pleased to announce the final close of its second student-run private equity fund, KFBSF Private Equity Fund II, L.P. ("Fund II"). Fund II continues Fund I's dual mandate of providing an educational opportunity to students and providing real returns to its limited partners. The final close took place on October 15, 2010 with capital commitments of $3.1 million. Combined with the assets of Fund I, the students have in excess of $5 million under management. The two funds make direct investments in private companies alongside larger, well established private equity funds, including the Halifax Group, PNC Equity Fund, Hatteras Funds, Tryon Capital, Carrboro Capital, Plexus Capital, SV Life Sciences, among others.

Fund II invests across a diversified range of private asset classes including traditional equity buyouts, mezzanine debt, and venture capital. As a representative transaction, Fund II recently invested alongside PNC Equity Partners in the acquisition of Revolution, Inc., a leading provider of footwear, bodywear, and recital costumes through dance schools. Fund I's capital has been fully committed and it has begun exiting its earlier investments, while Fund II is actively sourcing new investment opportunities.

Since raising Fund I (KFBSF Private Equity Fund I, L.P.) in 2007, the Fund has successfully completed fourteen investments across a wide range of industries by partnering with leading, top quartile private equity and venture capital firms. The Fund has exited one investment with a 3.7 x return of capital, and continues to monitor the performance of its remaining 13 portfolio companies and anticipates a number of potential exit opportunities in 2011.

The Fund remains one of the only student-run private equity funds in the country investing true limited partner capital. The student managers guide and control all aspects of the fund's lifecycle including fundraising, deal generation, deal execution, and portfolio management and reporting. "As we exit the fundraising cycle, we are excited to turn our attention to sourcing and executing the highest quality transactions possible for our limited partners in Fund II," said Trey Lambert, one of the firm's Managing Directors. The 12 student managers include both MBA and BSBA students, under the direction of their faculty advisor, Dr. W. Clay Hamner, Frank Hawkins Kenan Professor of Private Equity, who himself is a seasoned private capital portfolio manager.

Based on this program, Kenan-Flagler has been ranked as one of the top 5 business school in private equity alongside Harvard, Dartmouth, Wharton and the University of Chicago (see: http://privateequityblogger.com/2010/08/best-private-equity-business-schools.html).

Contact Information