Bertram To Launch Fund II Following Acquisition

Firm: Bertram Capital Management

Fund: Bertram Capital Fund II

Target: $500 million

Legal Adviser: Kirkland & Ellis

San Mateo, Calif.-based lower mid-market shop Bertram Capital Management plans to formally launch its sophomore vehicle once it clinches one more platform acquisition with capital raised from its $350 million debut fund closed in 2007.

Bertram Capital, which invests in aerospace, health care, manufacturing, business services and cleantech, intends to seek $500 million for Bertram Growth Capital II LP, without the help of a placement agent. It expects to make its platform acquisition shortly and to wrap up the fund by the end of the second quarter, securing capital from both new and prior investors.

Prior backers include financial institutions, fund of funds, university endowments and corporate pension funds from North America and Europe, including the California Public Employees’ Retirement System, John D. and Catherine T. MacArthur Foundation, Los Angeles County Employees Retirement Association and Neuberger Berman Private Equity Partners.

In early 2009, Bertram Capital portfolio company Author Solutions Inc. acquired Xlibris Corp., a provider of print-on-demand self publishing services. In April the firm acquired the publishing assets of Trafford Publishing of Victoria, British Columbia. Trafford was the first company to offer an on-demand publishing service and was an early adopter of the Internet bookstore model.

Bertram Capital makes platform acquisitions of companies generating annual EBITDA of $3 million to $15 million and revenue of $20 million to $150 million. Add-ons have no minimum requirements. Its typical aggregate equity commitment runs between $20 million and $90 million.

Jeff Drazan, former managing director at Sierra Ventures, and his brother Ken Drazan founded the firm in 2006.