Black Americans have accomplished much in private equity despite their relatively small numbers. In recent weeks they have ratcheted up the pace of achievements.
Former investment bankers Evan Lyons (pictured) and Jershon Jones unveiled new investment firms; Daphne Dufresne of Awani Capital landed a state pension fund as a backer for a debut fund well on its way to a $500 million target; and 5th Century Partners, co-founded by Bruce Hampton and Marques Torbert, closed its second healthcare and business services-focused fund above target at $276 million with an assist from placement agency Monument Group.
“Within the black and diverse manager LP ecosystem there’s an incredible amount of energy and passion,” said Lyons, who announced the launch of his New York City firm Montrose Vale earlier this year and who plans to raise a debut fund. Still, Lyons said that work remains to expand the population of minority-led firms. “I encourage investors to challenge their traditional underwriting criteria to better reflect the experiences of diverse managers.”
All told last year, money manager Fairview Capital counted some 135 U.S. Black-owned PE/VC firms in the market raising money, but only about 26 raising buyout firms, according to its just-published annual market review. By comparison, some 596 North American buyout funds were in the market last year altogether, according to With Intelligence.
Here’s a closer look at what Montrose Vale and other Black-owned PE firms have accomplished in recent months.
Montrose Vale: This New York City-based shop plans to invest in tech-enabled services and digital media infrastructure services companies generating $5 million to $20 million of EBITDA. Founder and Partner Lyons said he’s “extremely bullish” about the opportunity to acquire such companies in fragmented markets, to make them more efficient through the judicious application of artificial intelligence, and to grow them both organically and through add-on deals. In the next few weeks Lyons plans to announce the hiring of a co-founding operating partner to join him. By the end of the year, the firm, which has support from a network of advisors and investors, may also bring on another deal executive.
Bona Fides: To his new venture Lyons brings rainmaking, entrepreneurial, and operational chops. Most recently he spent nearly four years as an investment banking associate at Bank of America, working on credit underwriting and both buy-side and sell-side M&A assignments. Much earlier, as a student at the Wharton School from 2009 to 2013, Lyons founded and led a local delivery company called Vago Logistics. After graduating he founded and ran a Chicago management consulting company called Alexander Holdings Group. He went on to management roles at GM Financial that gave him a taste for applying AI to improving business operations on a large, global scale.
Jershon Jones: In his Linkedin profile, the former managing director at investment bank Harris Williams said he is the managing partner and founder of a new private equity venture based in Washington DC. We were unable to talk with Jones by press time to learn more about fundraising or hiring plans. On his profile, Jones wrote that his firm provides “tailored capital solutions” to consumer, transportation and business services companies. “We partner with founders and executives to transition market-leading businesses into their next phase of growth and profitability.”
Bona Fides: Jones spent nearly 17 years at Harris Williams, from 2007 to 2024. There he worked on deals as part of the transportation, logistics and automotive group, advising clients on M&A. He helped lead Flagstop Car Wash’s recapitalization with Garnett Station Partners and the sale of Bregal Sagemount portfolio company Keg Logistics to Seaport Capital.
Awani Capital: The Illinois Municipal Retirement Fund earlier this year approved a commitment of up to $35 million to the Awani Capital Fund I LP, the debut fund of Fulton, Maryland-based Awani Capital. The firm, founded last year by Managing Partner Daphne Dufresne to invest in business and industrial services, had raised at least $259 million for the fund as of a regulatory filing from last August. Before starting Awani Capital Dufresne worked as a managing partner at GenNx360 Capital Partners.
5th Century Partners: With a replenished war chest, the Chicago-based firm now manages more than $550 million and an 11-company portfolio, according to its website. Before starting the firm around 2020, Hampton served as a vice president for middle market firm The Vistria Group, leading education and healthcare deals. Torbert formerly served as a chief executive officer and chairman for PE-backed company Ametros, which specializes in healthcare and insurance services.