OceanSound Partners Closes $3.4 Billion in Connection with Fund III

Fund III continues OceanSound’s focus on national security and mission critical technology investments and increases OceanSound’s AUM to more than $8 billion

NEW YORK & WEST PALM BEACH, Fla.--(BUSINESS WIRE)--OceanSound Partners (“OceanSound”), a growth-oriented private equity firm that invests in technology and technology-enabled services companies serving aerospace, defense, government and highly regulated enterprise end markets, today announced the final close of its third fund, OceanSound Partners Fund III, LP (the “Fund”), with $3.0 billion in total capital commitments. Together with related co-investment vehicles, OceanSound has raised $3.4 billion¹ of cumulative committed capital in connection with the Fund.

OceanSound received support from a diverse group of well-regarded existing and new limited partners, including leading pension plans, sovereign wealth funds, endowments, foundations, family offices, institutional consultants, asset management firms and insurance companies. The Fund was significantly oversubscribed with OceanSound’s existing investors increasing their commitments by approximately 125% from the predecessor fund and nearly all of the predecessor fund investors returned as investors in the Fund.

The Fund closed at its $2.9 billion hard cap, substantially exceeding its $2.0 billion target, following a brief fundraising process with a first close held in December. OceanSound previously raised $1.49 billion for Fund II (closed October 2024) and $780 million for Fund I (closed February 2022), exceeding their respective targets of $1.0 billion and $550 million. Fund II is now substantially invested, with remaining capital allocated for follow-on growth investments.

OceanSound focuses on investments in middle-market companies where its expertise in aerospace, defense, government and highly regulated enterprise end markets can drive strong growth and outperformance. The team takes an engineering-like approach to building better businesses grounded in sound strategic initiatives and operational best practices to achieve accelerated revenue growth and margin enhancement. The firm typically invests $75 to $350 million through controlling-ownership positions in companies with enterprise values of $150 to $750 million. OceanSound currently manages in excess of $8.2 billion in Regulatory Assets Under Management and has invested in twelve platform investments which, in turn, have completed 56 add-on acquisitions. OceanSound’s portfolio companies collectively generate over $4.0 billion in revenue and employ over 14,000 individuals.

“The successful closing of our third fund can be attributed to OceanSound’s differentiated investment strategy together with proven execution which has produced attractive fund performance including capital returned to investors,” stated Joe Benavides, CEO and Founder of OceanSound. "Since starting the firm shortly before the COVID-19 pandemic, we have raised three funds, closed a continuation fund, returned the majority of our inaugural fund’s capital to our investors, and closed nearly 70 transactions in challenging markets. We could not be more pleased with all we have accomplished and are excited about the investment landscape for our strategy, which we believe has never been better in our professional careers. We are extremely grateful for the continued confidence of our investors, including some of the most respected institutional private equity investors. Their support underscores our ability to identify attractive platform company investments in national security and mission critical technology companies which we can transform into more strategically valuable businesses due to our proprietary perspectives and standardized ownership processes."

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and UBS’ Private Funds Group served as the exclusive global placement agent for OceanSound.

About OceanSound Partners
OceanSound Partners is a private equity firm that pursues control investments in technology and technology-enabled services companies serving aerospace, defense, government and highly regulated enterprise end markets. OceanSound employs a partnership approach, working closely with founders, entrepreneurs, and executives of middle market businesses to drive transformational growth. The firm has offices in New York, West Palm Beach and Buenos Aires. For more information, please visit www.oceansoundpartners.com.

_________________________

^1 Fund III’s $3.4 billion of cumulative committed capital in connection with the Fund includes existing OceanSound co-investment sidecars that will invest alongside Fund III and Fund III co-investment sidecars that are in process of closing.