What started as a small, pass-the-hat-around fund of funds open to friends and colleagues of investment banking executive Brett Paschke (pictured) has led to the launch of a money manager and a far more substantial successor fund. Expect the firm to hire an analyst or two over the next 12 months.
Lake-Forest, Illinois-based WinForest Partners is close to reaching its $105 million hard cap for WinForest Fund II LP. Joe Dimberio, a long-time fund-of-funds executive who signed on as partner in August, said that the fund launched in the early fall with a target of $75 million. He expects to hold a final close next month.
“The reality is we raised it really fast, a year ahead of when I expected it to be raised,” said Dimberio, who spent nearly 16 years at Chicago-based funds-of-funds manager Twin Bridge Capital Partners before stepping down as a partner in late 2022.
The Bonafides: During a 27-year-career at William Blair, Paschke served in several executive roles. These include head of equity capital markets, a position in which he raised money for a number of companies and their private equity sponsors. Dimberio, meanwhile, joined Twin Bridge Capital Partners not long after its founding in 2005. He contributed to all aspects of the business, from fundraising to investment selection to portfolio monitoring to product development. All told he helped commit more than $2 billion to some 60 North American buyout funds and helped deploy more than $1 billion in more than 90 co-investments.
The Genesis: Back in 2021, Paschke decided to create a small fund of funds for a circle of executives he knew from investment banking, asset management and private equity. It was a side gig: It wasn’t until this December that Paschke stepped down as partner, senior director and vice chair of investment banking at William Blair. According to Dimberio, Paschke had so much fun with the fund of funds––and success––that he decided to focus on WinForest Partners full time and open up a second fund to other wealthy friends and family members.
The Strategy: Eventually the $18 million to $20 million first pool was allocated to a collection of mid-market buyout funds and co-investments with a bent toward technology, healthcare and business services. Expect about 70 to 75 percent of the second pool to be earmarked for 18-20 funds, including more sub-$1 billion funds this time around. The rest will likely go to a series of co-investments and venture capital deals. Dimberio said that while its check sizes may be small, the firm is so nimble, and its partners so well-connected, that it has found its way into highly popular funds.
The Portfolio: About $25 million of Fund II is spoken for, with commitments made to eight funds, said Dimberio. Sponsors whose funds are in the second portfolio include Menlo Park-based Accel-KKR, Boston-based Berkshire Partners, Chicago-based CIVC, Boston-based Clearhaven Partners, Southlake,Texas-based Gauge Capital, Boston-based Parthenon Capital, Boston-based PSG, and Chicago-based Vistria Capital.
The Team: Along with Paschke and Dimberio, WinForest Partners employs an outsourced CFO and a part-time associate.
Members of sister fundraising platform LPAllocator.com can find contact information for WinForest Partners executives in our LP profile.