OceanSound captures $1.5B for its second fund

Private equity firm OceanSound Partners said Tuesday it has completed the raise for its second fund with $1.49 billion in capital commitments from investors.

The original hard cap for OceanSound Partners Fund II was $1.3 billion, while the firm had a target of $1 billion to capture from existing and new investors. OceanSound’s inaugural fund that closed at $780 million in 2022 was also oversubscribed compared to the $550 million goal.

OceanSound also manages a single-asset continuation fund that closed in April with $1.15 billion in capital fetched from investors and includes SMX, the digital transformation specialist first acquired in early 2020.

"Since starting the firm shortly before the COVID-19 pandemic, we have raised two funds, closed a continuation fund, returned the majority of our inaugural fund’s capital to our investors, and closed nearly 50 transactions in challenging markets, especially for newer firms,” OceanSound managing partner Joe Benavides said in a release.

DMI is OceanSound’s other portfolio company in the government market after having purchased that contractor in 2019.

OceanSound’s network of investors is like many other PE firms in that it includes pension plans, endowments and foundations, family offices, institutional consultants, asset management firms and insurance companies.

Paul, Weiss, Rifkind, Wharton & Garrison LLP worked as legal counsel for OceanSound.