Cressey Crosses $300M Mark On Debut Fund

Firm: Cressey & Co.

Fund: Cressey & Co. Fund IV LP

Amount Raised: Approximately $300 million

Target: Approximately $400 million

Placement Agent: Park Hill Group LLC, Shannon Advisors

After two years in the market, buyout firm Cressey & Co. has gathered just over $300 million in commitments toward its first fund since its split from Thoma Cressey Bravo in 2007.

Cressey & Co. Fund IV LP had an initial target of $500 million, but the firm has since lowered that figure to around $400 million, sister Web site peHUB has learned. Cressey & Co. plans to hold a final close in the first half of 2010, with Park Hill Group LLC and Shannon Advisors serving as the fund’s placement agents. A call to partner Bryan Cressey was not returned.

The firm split amicably from Thoma Cressey Bravo two years ago to invest exclusively in health care services companies, while the other team, under the name Thoma Bravo, buys companies in software, education, distribution, financial services and consumer goods and services. In March, Thoma Bravo closed its first solo fund with $822.5 million in capital commitments.

Cressey argued at the time that an increase in life expectancy would drive the need for more health care services. He also noted that buyout firms tend to shy away from health care services because of regulatory complexities, giving his firm less pricing competition on deal opportunities.

Since the split, Cressey & Co. has added Bill Frist, former U.S. Senate Majority Leader, as a partner. Senator Frist was the first practicing physician to be elected to the U.S. Senate since 1928. The firm also partnered with Ralph Davis, chairman of law firm Waller Lansden Dortch & Davis LLP.

Partners of Cressey & Co. and Thoma Bravo continue to share office space and to jointly manage their prior funds.