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Adviser Profile

As of Date 05/21/2024
Adviser Type - Large advisory firm
Number of Employees 19 5.56%
of those in investment advisory functions 17 6.25%
Registration SEC, Approved, 2/4/2020
Other registrations (1)
Former registrations

EDGEWATER CAPITAL MANAGEMENT, LLC

AUM* 572,097,621 56.28%
of that, discretionary 572,097,621 56.28%
Private Fund GAV* 572,097,621 56.28%
Avg Account Size 143,024,405 56.28%
SMA’s No
Private Funds 4
Contact Info 216 xxxxxxx
Websites

Client Types

- Pooled investment vehicles

Advisory Activities

- Portfolio management for pooled investment vehicles

Compensation Arrangments

- A percentage of assets under your management
- Performance-based fees

Reported AUM

Discretionary
Non-discretionary
366M 314M 261M 209M 157M 105M 52M
2020 2021 2022 2023

Private Funds



Employees

Private Funds Structure

Fund Type Count GAV
Fund TypePrivate Equity Fund Count4 GAV$572,097,621

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Brochure Summary

Overview

A. Describe your advisory firm, including how long you have been in business. Identify your principal owner(s). Edgewater Capital Management, LLC (“ECM” or the “Firm”), an Ohio limited liability company, is a private equity firm based in Cleveland, Ohio. Founded in 1998, ECM focuses on acquiring performance products companies in the lower middle market. The Firm has extensive experience and expertise with niche manufacturers of specialty chemicals, pharmaceuticals and engineered substances. ECM serves as the investment adviser for, and currently provides discretionary investment advisory services to, the following private funds: Edgewater Capital Partners II, LP (“Fund II”); Edgewater Capital Partners III, LP (“Fund III”); Edgewater Capital Partners IV, LP (“Fund IV”); and Edgewater Capital Partners V, LP (each, a “Fund” and collectively, the “Funds”). In addition, as described more fully in Item 7 below, the Firm permits certain investors and third parties to co-invest alongside a Fund directly into a portfolio company. Such direct co-investments are not considered Funds or clients of ECM. Each Fund is affiliated with a general partner (each a “General Partner,” or collectively the “General Partners”) with authority to make investment decisions on behalf of the Funds. Edgewater Group II, LLC is the General Partner of Fund II; Edgewater Group III, LLC is the General Partner of Fund III; Edgewater Group IV, LLC is the General Partner of Fund IV; and Edgewater Group V, LLC is the General Partner of Fund V. These General Partners are deemed registered under the Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder (“Advisers Act”) pursuant to ECM’s registration in accordance with SEC guidance. The applicable General Partner of each Fund retains investment discretion and investors in the Funds do not participate in the control or management of the Funds. While the General Partners maintain ultimate authority over the respective Funds, ECM has been designated the role of investment adviser. References to ECM throughout this Brochure also references the General Partner entities, unless the context otherwise requires. For more information about the Funds and General Partners, please see ECM’s Form ADV Part 1, Schedule D, Section 7.A.(1) and Section 7.B.(1). Principal Owners/Ownership Structure ECM is owned by Ryan Meany, Christopher Childres, Robert Girton, Peter Ostergard and Brian Leonard. For more information about ECM’s owners and executive officers, see ECM’s Form ADV Part 1, Schedule A. B. Describe the types of advisory services you offer. If you hold yourself out as specializing in a particular type of advisory service, such as financial planning, quantitative analysis, or market timing, explain the nature of that service in greater detail. If you provide investment advice only with respect to limited types of investments, explain the type of investment advice you offer, and disclose that your advice is limited to those types of investments. ECM provides investment advisory services as a manager to its Funds. The Funds invest through privately negotiated transactions in operating companies in the performance products industry (generally referred to as “portfolio companies”), with a focus on companies in the lower middle market. Each portfolio company has its own independent management team responsible for managing its day-to-day operations, although the senior principals or other personnel and/or third parties appointed by ECM will generally serve on such portfolio companies’ respective boards of directors or otherwise act to influence control over management of portfolio companies held by the Funds. In addition, in some cases, ECM will more directly influence the day-to-day management of a portfolio company by recruiting and installing certain individuals in various leadership roles, such as chief executive officer, chief operating
officer, chief financial officer or in other roles. ECM’s investment advisory services to the Funds consist of identifying and evaluating investment opportunities, negotiating the terms of investments, managing and monitoring investments and achieving dispositions of such investments. Investments are made predominantly in nonpublic companies. C. Explain whether (and, if so, how) you tailor your advisory services to the individual needs of clients. Explain whether clients may impose restrictions on investing in certain securities or types of securities. The Firm’s investment advice and authority for each Fund is tailored to the investment objectives of that Fund; ECM does not tailor its advisory services to the individual needs of investors in its Funds. These objectives are described in and governed by, as applicable, the private placement memorandum, limited partnership agreement, investment advisory agreements, subscription agreements, side letter agreements and other governing documents of the relevant Fund (collectively, “Governing Documents”) and investors determine the suitability of an investment in a Fund based on, among other things, the Governing Documents. The Firm does not seek or require investor approval regarding each investment decision. Fund investors generally cannot impose restrictions on investing in certain securities or types of securities, other than through side letter agreements. Investors in the Funds participate in the overall investment program for the applicable Fund and generally cannot be excused from a particular investment except pursuant to the terms of the applicable Governing Documents. In accordance with industry common practice, ECM has entered into side letters or similar agreements with certain investors including those who make substantial commitments of capital or were early-stage investors in the Funds, or for other reasons in the sole discretion of ECM, in each case that have the effect of establishing rights under, or altering or supplementing, a Fund’s Governing Documents. Examples of side letter rights entered into include certain notification provisions, disclosure of confidential information, transfer rights, indemnification provisions, provisions whereby investors have expressed an interest in participating in co-investment opportunities, advisory board representation, reporting requirements, tax matters and most favored nations provisions, among others. These rights, benefits or privileges are not always made available to all investors, consistent with the Governing Documents and general market practice. Commencing in March 2025, ECM will make required disclosure of certain side letters to all investors (and in certain cases, to prospective investors) in accordance with the new Private Fund Rule. Side letters are negotiated at the time of the relevant investor’s capital commitment, and once invested in a Fund, investors generally cannot impose additional investment guidelines or restrictions on such Fund. There can be no assurance that the side letter rights granted to one or more investors will not in certain cases disadvantage other investors. D. If you participate in wrap fee programs by providing portfolio management services, (1) describe the differences, if any, between how you manage wrap fee accounts and how you manage other accounts, and (2) explain that you receive a portion of the wrap fee for your services. ECM does not participate in wrap fee programs. E. If you manage client assets, disclose the amount of client assets you manage on a discretionary basis and the amount of client assets you manage on a non-discretionary basis. Disclose the date “as of” which you calculated the amounts. As of December 31, 2023, ECM managed approximately $572,097,621 in Fund regulatory assets, all managed on a discretionary basis. ECM does not manage any investments on a non-discretionary basis.