(Bloomberg) -- Atlantic Park, a joint venture between Tripp Smith's Iron Park Capital Partners and private equity firm General Atlantic, is seeking $3 billion or more for its second fund, according to people with knowledge of the matter.
Executives from Atlantic Park have begun conversations with potential investors regarding the vehicle, known as Atlantic Park Strategic Capital Fund II, the people said. The fund -- which will invest across North America, Europe and the U.K. -- is expected to reach a first close in the first quarter of 2022, and is targeting a final close around the end of August, people briefed on the discussions said.
Atlantic Park, led by executives including Matt Bonanno, targets annualized net returns of 15% by investing $150 million to $500 million in companies with enterprise values of $500 million to $2 billion, one of the people said. It has flexibility to purchase preferred equity, mezzanine debt and debt with warrants attached, among other structured finance products which may be used to support management buyouts, shareholder recapitalizations, acquisitions and other transactions, the person said.
Atlantic Park's first fund is about 70% committed, and is slated to be completely deployed by March 2022, a person with knowledge of the matter said.
A representative for New York-based Atlantic Park declined to comment.
Read more: Atlantic Park Nabs $2.2 Billion for Debut Strategic-Capital Fund
Alternative asset managers such as Sixth Street, Apollo Global Management Inc.'s hybrid value arm and Blackstone Inc.'s tactical opportunities business also make structured equity and debt bets.
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