Cortec Group is poised to make a killing on their investment in a cooler maker if it successfully goes public.
The small private equity firm could make about $3.3 billion in the initial public offering of Yeti Holdings Inc., which could happen as soon as October, according to a story by The Wall Street Journal’s Matt Jarzemsky.
Cortec invested about $67 million in Yeti back in 2012, which means it could make 50 times its money in four years, the Journal reported.
That’s an enviable figure for the private equity industry, which is confronting a new normal after enjoying startling growth over the past few years. These firms are sitting on record high cash levels and are actively seeking the next leg of growth, ranging from retail investors to private tech companies.
Yeti produces hard-sided coolers that have earned a cult following among outdoors enthusiasts. It has also expanded into drinkware, clothing and other outdoor gear. While the company is looking for a valuation of $5 billion in its IPO, the steep price tag could change based on investor sentiment.
Notably, Cortec is run by four partners and only employees 20 people in its Manhattan office. It invests in healthcare and consumer companies with revenues between $40 million and $300 million, according to its website. Cortec manages over $2 billion in assets and is currently investing its sixth fund, which has $1.1 billion of capital.