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Capital Partners Closes Third Fund at $600 Million Hard Cap
Capital Partners, LLC (“Capital Partners”) is pleased to announce the successful closing of its third fund, Capital Partners Private Equity Income Fund III, LP (“Fund III”), at its hard cap with $600 million in capital commitments. Finn Dixon & Herling LLP served as legal counsel and Lazard served as placement agent in the raising of Fund III.
Fund III continues Capital Partners’ primary strategy of making control equity investments by acquiring small and mid-sized family and management-owned companies in the manufacturing, distribution and service industries. Consistent with the strategy of prior funds, Fund III focuses on opportunities where it can engage Capital Partners’ experience in actively supporting companies in developing and executing strategic growth plans to build longer-term value and generate quarterly cash yields for investors. In support of its objectives, Fund III plans to finance its acquisitions with only low-to-moderate levels of outside debt, with most of the capital provided by Fund III, sellers and portfolio management teams primarily in the form of equity. Capital Partners became dedicated to this approach in 2004 and believes that the use of only moderate levels of outside debt to finance transactions should result in decreased leverage-related risks for the portfolio companies and, thereby, enable portfolio company management to execute strategic growth plans with higher probabilities of success and greater growth in operating earnings.
Fund III successfully raised capital from a cross section of limited partners, including insurance companies, public and private pension funds, endowments, foundations and high net worth individuals. Rob Tucker, a Managing Partner of the firm, said “We are very pleased with the strong support from both our existing and new investors for Fund III. We are quite fortunate to have such a distinguished group of investment partners.” Mark Allsteadt, a Managing Partner of the firm, commented “We look forward to continuing our lower-debt, cash-yielding investment strategy to deliver the strongest returns possible for our Limited Partners and portfolio company management teams.”
About Capital Partners
Capital Partners (www.capitalpartners.com) is a private investment firm founded in 1982. Our principals have invested in more than 75 platform and add-on acquisitions across a variety of industries.Based on the combination of solid investment discipline and our low leverage approach, we have successfully partnered with management teams through multiple economic cycles.