A newly launched private equity fund has emerged from a spinout of Blackstone billionaire Tony James’ family office, according to Bloomberg. This development reflects a growing trend where family offices are increasingly involved in private equity and venture capital.
Madison River Capital, founded in 2022, has reportedly raised approximately $370 million from high-net-worth individuals and institutional investors. The fund is focused on acquiring small-to-medium-sized businesses in sectors such as healthcare, industrials, and business services. James himself contributed around $60 million as an anchor investor.
Previously, James managed his private equity investments through his New York-based family office, Jefferson River Capital. Madison River’s managing partner, David Wittels, who formerly served as president of Jefferson River Capital, led the spinout’s formation.
The growing collaboration among family offices in private markets underscores the need for structured investment vehicles, according to UBS Family Office Solutions’ Mark Tepsich. Many family offices are establishing dedicated firms to navigate the private equity and venture capital space efficiently.
