Cleary Gottlieb represented ACON-Bastion Partners in forming its new leveraged buyout fund, ACON-Bastion Partners II, L.P. and related “club” fund, ACON Investment Partners. The initial closing of the fund included total commitments in excess of $310 million, with expected total commitments of approximately $600 million during the fourth quarter of 2006.
The unique structure of the fund permits investors to choose between a committed pool and a discretionary co-investment pool with over $65 million in commitments. The discretionary co-investment pool will make investments alongside the main fund, allowing investors to increase their exposure on a deal-by-deal basis. The fund will focus on middle-market private equity investments in the United States and Canada based on three broad themes: investments in demographic growth/Hispanic-themed companies; investments in firms currently suffering from elements of operational or balance sheet turmoil; and investments in the energy and energy services sector.