Tailwind is a private equity firm formed under Delaware law as a limited partnership. Headquartered
in New York City, the firm is led by its eleven partners, including managing partners Lawrence
Sorrel and Jeffrey Calhoun. The partners collectively average two decades of private equity
experience. Tailwind was established in 2007.
Tailwind serves as an investment manager and provides investment advisory services to private
investment partnerships. Currently, this includes Tailwind Capital Partners II, L.P. and its parallel
funds (the “Tailwind II Funds”), Tailwind Capital Partners III, L.P., its parallel and feeder funds
and an alternative investment vehicle (the “Tailwind III Funds”) and Tailwind Capital Partners IV,
L.P. and its parallel funds (the “Tailwind IV Funds”) and together with the Tailwind II Funds and
the Tailwind III Funds and certain Co-Investment Funds (defined below) referred to below, each a
“Fund” and collectively the “Funds”).
The Tailwind II Funds, the Tailwind III Funds and Tailwind IV Funds primarily make control
investments in North American based, lower middle-market companies with a focus on subsectors
within the Infrastructure Services, Supply Chain and IT Services industries. As of December 31, 2023
the Tailwind IV Funds have not commenced investment activity. Within these subsectors, the Funds
generally target companies that have an asset-light, services business model with the potential to be
transformed through Tailwind’s operationally intensive value creation process. Typically, Tailwind
acquires companies that have enterprise values between $100 and $300 million that require equity
investments between $50 million and $150 million, although certain transactions may be below or
exceed these amounts.
Tailwind pursues a Buy and Build investment strategy, which is designed to build platforms that
actively acquire and integrate smaller businesses. To accomplish this, Tailwind invests in in-house
corporate development resources, portfolio leadership, technology infrastructure and other
foundational processes which are designed to enable a more rapid scaling and integration of smaller
accretive add-ons. Tailwind believes this Buy and Build strategy has two key benefits: (i) blending
down the platform entry multiple and (ii) enabling companies to accelerate growth and scale faster
than possible through organic growth alone. To support its Buy and Build investment strategy,
Tailwind prioritizes four distinct value creation levers: (i) Foundational, (ii) Talent, (iii) Technology
and (iv) M&A. Tailwind seeks to transform these businesses into larger companies with sufficient
scale to be desirable acquisition targets for both corporate and financial buyers.
Tailwind had previously pursued investments in healthcare companies, and Tailwind Capital
Partners, L.P. (which is now dissolved) had ancillary strategies of investing in development stage
companies and transactions involving complex carveouts, which included healthcare companies,
along with companies in the financial services and emerging telecom sectors, but has ceased making
new platform investments in these strategies (collective, the “Discontinued Strategies”). For further
information
about Tailwind’s investment strategy, including a description of how Tailwind seeks to
transform the Funds’ portfolio companies, see “Methods of Analysis, Investment Strategies and Risk
of Loss” below.
Tailwind has established several co-investment vehicles (each, a “Co-Investment Fund” and
collectively, the “Co-Investment Funds”), which are, to the extent available and at the discretion of
Tailwind, offered co-investment opportunities alongside the Funds. The existence of such multiple
vehicles and accounts creates potential conflicts of interest. See “Methods of Analysis, Investment
Strategies and Risk of Loss” below.
Tailwind Capital Partners II (GP) LP serves as the general partner of the Tailwind II Funds, Tailwind
Capital Partners III (GP) LP serves as the general partner of the Tailwind III Funds and Tailwind
Capital Partners IV (GP) LP serves as a general partner of the Tailwind IV Funds. Tailwind Capital
Partners II (GP) LP, Tailwind Capital Partners III (GP) LP, Tailwind Capital Partners IV (GP) LP,
Tailwind Co-Invest (GP) LLC and Tailwind Co-Invest III (GP) LLC (collectively, the “Related
Advisors”) are affiliated advisers of Tailwind and each entity relies upon Tailwind’s registration with
the SEC. This brochure also describes the business practices of the Related Advisors, which operate
as a single advisory business together with Tailwind, and, as such, references herein to Tailwind shall,
as the context requires, include the applicable Related Advisors. For further information regarding
these entities, see “Other Financial Industry Activities and Affiliations” below.
As of December 31, 2023, Tailwind and its Related Advisors managed approximately $3.9 billion
on a discretionary basis on behalf of the Funds.
In providing services to the Funds, Tailwind executes the investment objective for each Fund, directs
and manages the investment of each Fund’s assets and provides periodic reports to investors in each
Fund. Investment advice is provided directly to each Fund and not individually to the Funds’ investors.
Tailwind manages the assets of each Fund in accordance with the terms of the governing documents
applicable to each Fund, which are generally established at the time of the formation of a Fund. The
investors cannot direct investments by the Funds and, except in limited circumstances, investors are
not permitted to withdraw from a Fund prior to completion of the Fund’s winding up.
Tailwind, together with its affiliated entities, raised capital through a minority passive investment
from Investcorp’s Strategic Capital Group. The capital raised will be used to support Tailwind’s
continued growth and to increase Tailwind’s general partner commitment in the Tailwind IV Funds
and future funds.
Limited partner interests in the Funds are not registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and the Funds are not registered under the Investment Company
Act of 1940, as amended (the “Investment Company Act”). Accordingly, interests in the Funds are
offered and sold exclusively to investors satisfying the applicable eligibility and suitability
requirements either in private transactions within the United States or in offshore jurisdictions.