Capital Partners $360 mln fund II beats target by $110 mln

The fund targets investments in private, North American companies with dedicated management teams, solid market positions, records of free cash-flow generation, prospects for growth and EBITDA between $4 million and $25 million, Robert Tucker, managing director of Capital Partners Inc, said in a prepared statement.

The firm more than the doubled the $141 million raised in Capital Partners Private Equity Income Fund I, which was in the market in 2006.

The new vehicle will focus on “opportunities that will generate an attractive annual cash yield,” Mark Allsteadt, a Capital Partners managing director, said in a prepared statement.

Brian Fitzgerald, the third managing director of the firm overseeing the fund, said CP II plans to finance its acquisitions with a “moderate level of outside debt and substantial equity”, to result in lower leverage risk for portfolio companies.

The fund has already made two platform investments: American Leather, a manufacturer of high-end furniture, and Derby Fabricating Solutions, a maker of foam and rubber components.

The fund was oversubscribed and increased its hard cap to accommodate investor demand, said Terry Crikelair, managing partner of Champlain Advisors. 

Capital Partners filed its first Form D for the fund in December, 2011, and disclosed $108.5 million raised as of December, 2012, according to public documents. Champlain Partners came on board in the spring of 2012.