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This can make deals very lucrative should they work out. Earlier this year, Sun Capital sold transmission parts manufacturer Raybestos Powertrain LLC, making 110 times its money, according to a person familiar with the matter.
But such transactions come with much more risk. Sun Capital has seen several companies file for bankruptcy on its watch, including ice cream maker Friendly’s, cargo and utility trailer manufacturer Pace American and auto parts supplier Mark IV Industries.
“He is great and talented person and has done a great job in building Sun,” said Gilbert Harrison, chairman of Financo LLC, a New York-based investment banking firm where Leder started his career.
Sun Capital is currently fundraising, seeking $3 billion from investors for its sixth buyout fund, according to sources.
Its fifth fund was valued at 1.23 times its investment cost as of the end of July according to the Oklahoma Police Pension and Retirement System, not a stellar performance but better than many other private equity firms that launched in 2007, at the height of the credit bubble preceding the financial crisis.
Their fifth fund is not among the top performing 25 percent of private equity funds launched in 2007, according to data firm Preqin, but is in the second quartile.
Leder’s political contributions go beyond Republican candidates. Excluding his support for Romney, from 2002 to present he’s given $63,200 to Republicans and $44,900 to Democrats.
He is also friendly with hip hop entrepreneur and liberal activist Russell Simmons and has supported his non-profit work in the arts.
“Marc Leder is a friend of mine and has been for many years,” Simmons said in a statement. “While Marc and I have different views on American politics, we share the same view on giving back.”
Aside from Simmons’ Art for Life charity, Leder also donates to charities, including Best Buddies International, which fosters friendships between people with and without intellectual disabilities, and the Samuel Waxman Cancer Research Foundation.