Pegasus Capital Advisors

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Pegasus Capital Advisors LP
Type Partnership
Industry Private Equity
Founded 1995
Headquarters New York, New York, United States
Key people Craig Cogut, Managing Partner
Products Leveraged buyout, Growth capital
Total assets $2 billion
Employees 60+
Website www.pcalp.com

Pegasus Capital Advisors L.P. is a private equity investment firm founded in 1995 by former co-founder of Apollo Management and Drexel Burnham Lambert lawyer, Craig Cogut. Cogut is a Managing Partner at Pegasus Capital Advisors, L.P. Pegasus specializes in sourcing, buying, and building middle-market companies that compete on the basis of sustainability and resource efficiency.

The firm has raised four funds since inception and currently manages US$2 billion in capital. Their offices are located in New York City, NY and Cos Cob, CT. They have made over 70 investments in various companies such as iGPS, Lighting Science, Molycorp Minerals, Universal Lubricants, and Cannondale.[citation needed]

The firm was recently appointed by Governor Arnold Schwarzenegger of California to serve as the financial advisor to the R20 Regions of Climate Action. The R20 has been created to facilitate, develop and implement low-carbon and climate resilient projects and market based solutions through cooperation between developed and developing country subnational governments.

History[edit]

Pegasus was founded by Craig Cogut in 1995. Prior to founding Pegasus, Cogut was a senior principal and one of the founding partners of Apollo Management. Leon Black and Craig Cogut started Apollo Management during the twilight of their careers at former investment banking power Drexel Burnham Lambert after the bank was besieged by allegations over illegal activities involving high-yield debt.[1] From 1990 to 1995, Cogut was involved in virtually all aspects of Apollo's distressed securities investments and restructurings.

He left Apollo in 1995 and established Pegasus to focus on investments in middle-market companies facing financial distress.[2] Like Jerome Kohlberg who left his KKR to find the middle-market private equity shop Kohlberg & Company, Cogut departed from Apollo to concentrate on the middle-market sector where returns from deals are more reliant on the actual alpha of the investor. In other words, Cogut wanted to concentrate on transactions that could generate returns through revenue growth and operating improvements rather than largely relying on financial leverage.

Funds[edit]

Since its founding in 1995, Pegasus has raised four private equity funds with total investor commitments of c. $2 billion.[3] Pegasus raises the capital from a variety of limited partners that include major public and corporate pension funds, leading endowments, fund of funds and family offices. It closed its fourth private equity fund in January 2007, hitting the US$750 million cap that had been set.[4]

  • Pegasus Partners I (1995) - $220 million
  • Pegasus Partners II (1999) - $561 million[5]
  • Pegasus Partners III (2004) - $316 million[5]
  • Pegasus Partners IV (2007) - $750 million[5]

As of December 31, 2007, funds II, III, and IV achieved returns of 19.57%, 28.23%, and 16.58%, respectively, despite the ensuing economic downturn caused by the financial crisis and the credit crunch.[6]

Portfolio[edit]

Since its inception in 1995, Pegasus has invested in more than 70 companies. The firm tends to invest in the consumer products, technology, business services, energy, financial services, industrial manufacturing and communications sectors.[citation needed] The following is a selected list of the firm's investments:

  • Universal Lubricants
  • Molycorp Minerals
  • Lighting Science
  • iGPS
  • Traxys
  • Cannondale Bicycle Corporation[7]
  • Jenzabar
  • PSI
  • Carol's Daughter
  • ImageSat International
  • NSI
  • Spirit Music Group
  • T&M Protection Resources
  • Hain Pure Protein Corporation

Competitors[edit]

Pegasus competes with other major private equity players in the middle-market, including Kohlberg & Company, gyro[disambiguation needed] Audax Group, Berkshire Partners, Golden Gate Capital, and Madison Dearborn Partners.

See also[edit]

References[edit]

External links[edit]