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Raine Group eyes $1 bln for TMT growth investing

Raine Group has been on a brisk growth trajectory, raising increasingly larger funds to target investments in technology, media and telecom companies.

The New York firm, formed in 2009 by executives from UBS and Goldman Sachs, is in market with its third private equity fund, targeting $1 billion, according to a person with knowledge of the process. Raine Partners III has no hard cap yet, the person said.

Whether Raine is working with a placement agent is unclear. Raine didn’t respond to a request for comment Tuesday.

Raine closed its second fund on $850 million in January 2015, beating its $750 million target. That fund was generating an 8.64 percent internal rate of return as of Dec. 31, 2016, data from Public Employees Retirement Association of Colorado shows. Fund I closed on $475 million in 2011, Buyouts reported.

Joseph Ravitch, an ex-partner at Goldman Sachs, and Jeffrey Sine, former vice chairman and global head of TMT at UBS, formed Raine in 2009 as a merchant bank.

Raine also has a venture-investing arm that raised $100 million for its second fund last year. The venture group is led by Managing Partner Gordon Rubenstein.

Raine Group advised William Morris Endeavor on its partnering with Silver Lake to buy IMG Worldwide in 2013 from Forstmann Little about $2 billion.

Earlier this year, Raine Group invested in Propagate Content, a Los Angeles indie studio that produces content for broadcast, cable, digital and emerging platforms.

In March, Raine’s venture group led a $22 million Series D funding round in Cheddar, a live-streaming news network, to launch the company’s second live news network and drive international expansion.

Action Item: Raine’s Form ADV:

A man walks through the rain in Times Square, Manhattan, on March 7, 2018. Photo courtesy Reuters/Amr Alfiky