Century Park Raises $265M

Century Park Capital Partners, a Los Angeles-based private equity firm, sailed through its latest fund-raising outing and came away with an investment vehicle more than two-times the size of its previous fund.

The firm hit the $265 million hard cap set for Century Park Capital Partners II LP – the follow-up vehicle to the firm’s $107 million inaugural fund that closed in 2000.

Having gathered all of fund II’s commitments in about 90 days, the fund-raising process was different from what Century Park co-founder Martin Jelenko anticipated.

“Most of what I see is how long fund-raising takes, how grueling it is, all the frogs you have to kiss to get the money,” Jelenko says. But that was not the case for fund II.

About $50 million of fund II’s total capitalization came from existing investors. The remainder of the capital came from the new institutional LPs, many of which are based in Europe. The minimum investment for the new fund was $5 million, though the firm reserved the right to wave that amount to admit some smaller investors.

All but one of the institutional investors that placed capital in the inaugural fund have made commitments in the second, says Jelenko, who adds that the one investor that did not return did so because it is no longer investing in private equity.

Mellon Ventures was the lead investor in fund I with a $25 million commitment.

Select LPs in fund II include Portfolio Advisors, Morgan Stanley, AlpInvest Partners NV, the University of Southern California and Allianz AG. The remainder of fund II’s investors includes a mix of pension plans, endowments, fund-of-funds and high-net-worth individuals, including seven executives form former Century Park portfolio companies.

Century Park typically places between $5 million and $20 million of equity into profitable, growing middle-market companies with sales ranging from $20 million to $150 million. The most common transactions the firm takes part in are buyouts, recapitalizations and growth capital investments.

Jelenko says that the firm is in the early stages of looking at two possible management-led buyouts of technology and product companies in the security industry, but declined to state more details.

The second fund has the same six-year investment window as its half-sized predecessor.