“Strong relationships are crucial to successful investing in buyouts. We are very proud of the depth and breadth of the connections we've established after more than a decade in this industry.”

Media Coverage

The Deal
Movers & Shakers
June 18, 2007

Twin Bridge Doubles Up
Twin Bridge Capital Partners, a Chicago-based buyout fund investor and equity co-investor, doubled its investment team with the addition of Joe Dimberio and Pat lanigan. They join co-founders Brian Gallagher and Debbie Ackerman, who launched Twin Bridge in the fall of 2005. The foursome met at PPM America Capital partners, the private equity arm of asset manager PPM America Inc., where Ackerman ran the firm's $1.2 billion fund-to-fund business, while Gallagher, Dimberio and Lanigan focused on its $2.2 billion co-investment program.

While similar private equity firms tend to separate their fund-to-fund investments and co-investments, Twin Bridge uses one fund for both.

Since founding Twin Bridge, Gallagher and Ackerman have raised a $500 million fund and spent about half of it, with investments in (and alongside) Goldner Haw Johnson & Morrison Inc. in its buyout of Allen-Edmonds Shoe Corp. last July; Centre Partners Management LLC in its 2005 buyout of renal-care business DSI Holding Co.; and Jeffries Capital Partners, the private equity group of investment bank Jefferies & Co., in its $695 million recapitalization of steel parts distributor Edgen/Murray LP in April.

Integrating fund and co-investments carries both tangible and intangible benefits, the Twin Bridgers say. Co-investments let a firm like Twin Bridge witness firsthand how other private equity groups perform, and whether to consider committing directly to their funds down the road.

Also, by investing in, and with, their sponsor groups, Twin Bridge doesn't pay management fees or carried interest, allowing the firm to pays its investors higher returns.

As for the future of private equity, Gallagher claims there's more opportunity - and longevity - in the middle market. "The lower end of the buyout space isn't as overheated," he says. "Since there's less efficiency, there are also higher returns. We're cautious that right now deals are getting done at multiples that don't always make sense, but we also feel we're in the best part of the space."