Bass protege hooks fund III: Alpine Investors seeks as much as $125M

Another Robert M. Bass vet is on the fund-raising trail, as Graham Weaver’s Alpine Investors is raising its third fund, according to a regulatory filing. The San Francisco-based firm is seeking as much as $125 million and has already raised $83 million, according to the filing.

Weaver, who founded Alpine Investors, expects to reach its target next month. He also said he expects the fund to be oversubscribed.

Alpine invests in the small- and micro-cap markets, in companies with cash flows of between $5 million and $20 million. The firm operates in various sectors, having made acquisitions in logistics, education, marketing and retail.

The micro-cap space, while under the radar, has generated its share of enthusiasm in recent years. With a smaller population of GPs targeting the market, and sale processes that aren’t nearly as efficient as higher priced deals, there has been a budding interest in micro-cap investing.

The Riverside Co., for instance, launched its first vehicle dedicated to the micro-cap space last October, and has received commitments from such LPs as the Ohio Public Employees’ Retirement System, among others.

Alpine raised $53 million for its first fund in 2001. The second fund was closed in 2003 with $69 million.

Alpine founder Weaver had previously served as a vice president at Oak Hill Capital Management, the private equity investment arm of Robert M. Bass.

His new fund joins a number of other firms with Bass DNA currently in the fund-raising market. Texas Pacific Group is the most notable of these, which is reportedly seeking around $14 billion for its latest fund. Meanwhile, The Halifax Group and Colony Capital are also reported to have had funds in the market recently.