Is Roark Capital Building a Franchise Bubble?

June 17, 2021

The Private Equity Stakeholder Project published a report on Atlanta-based Roark Capital Partners IV, which specializes in buying and running franchise businesses, especially within the food and restaurant industry. The performance of Roark, which closed at $2.5 billion in 2016, might give investors pause. As of September 2020, Roark Capital Partners IV had generated an annual return (IRR) of just 0.09% and 1.0x multiple. Roark raised at least $10.5 billion from investors between 2012 and 2018. Yet as of September 2020, Roark had only returned around $1 billion of that to investors. Some of the largest private equity investors have either exited investments in Roark Capital funds or held off on new investments.

Read the full report here.

Sign up to our newsletter to receive news and updates from PESP

Click here