Fund: Arsenal Capital Partners III LP
Target: $750 million
Amount Raised: None
Placement Agent: None
Legal Counsel: Kirkland & Ellis LLP
The firm, which has been pre-marketing the fund for months now, has not hired a placement agent. Last year it hired Bill Farrell to be its head of investor relations. Farrell previously was president of the placement agent Farrell Marsh & Co. Arsenal Capital also has not set a hard cap for the fund,
Executives at Arsenal Capital wanted to close a couple more deals from its second fund, a $500 million pool that closed in 2006, and score a couple exits as well before they officially hit up investors for more commitments, the source said.
They appear to be on their way on that front: On Jan. 4 the firm bought Fluoro-Seal, a plastics coating company, as Buyouts reported. The firm is also closing in on two other acquisitions, the source said. Perhaps more importantly for Arsenal Capital’s limited partners, the firm is in advanced discussions to sell two portfolio companies, both of which should return more than 3x the firm’s invested capital, the source said. These would be the first exits from
The firm will continue to target deals of the same size it seeks now. Arsenal Capital typically cuts equity checks of $25 million to $75 million in deals with enterprise values of $30 million to $400 million. Founded in 2000 by a duo of former executives from
Previous investors in Arsenal Capital funds have included