Colin McGrady headshot
Colin McGrady  From Cogent Partners

Cogent Partners co-founder launches private equity ‘restructuring’ shop

Apr 13, 2015

Colin McGrady co-founded Cogent Partners back in 2002, as an investment bank dedicated to a private equity "secondaries" market that was still very much in its infancy. But when Cogent was sold off to Greenhill & Co. (ghl) earlier this month for upwards of $108 million, McGrady opted not to go along with it.

Instead, the 42 year-old has launched a new firm called Cedar Springs Capital. Its strategy will be to participate in restructurings of private equity general partnerships, including so-called stapled secondaries in which a firm like Cedar Springs buys out an existing fund portfolio and commits additional capital for new deals.

"If I had wanted to keep being an advisor, then I would have stayed with Cogent," McGrady explains. "But this is on the principal investing side, and there's a real opportunity here.."

Dallas-based Cedar Springs will focus on private equity firms with $250 million or less in assets under management (i.e., funds too small to be targeted by advisory firms), with plans to initially invest as a fundless sponsor (i.e., solicit capital from a circle of supports on a deal-by-deal basis). It does expect to eventually raise a more formal investing vehicle.

Joining McGrady are former Cogent colleagues Neset Pirkul (principal) and Jonathan Standen (vice president). His co-founder is Mark Dunn, who previously was a managing director with Lakeside Capital Group.

Get Term Sheet, our daily newsletter on deals & dealmakers.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions