Crestview expects final close for Fund III in January

  • Fund III has raised $2.6 bln to date
  • Targeting $3 bln, $3.5 bln hard cap
  • Two Fund I portfolio cos sold recently

South Carolina was considering a $75 million commitment to the fund at its Nov. 20 meeting, but it’s not clear if that commitment received final approval.

Crestview set a $3 billion target with a $3.5 billion hard cap for Crestview Partners III. The firm has raised at least $2.6 billion and has already completed at least two deals through the vehicle.

Crestview will charge a 1.75 percent management fee on committed capital during its six-year investment management period and a 1.5 percent fee afterward. The general partner will provide at least 6 percent of fund’s capital.

Crestview’s debut fund, a $1.45 billion 2005 vintage vehicle, produced a 7.7 percent IRR and 1.54x multiple, according to South Carolina documents. Its second fund, a $2.4 billion vehicle raised in 2009, netted a 16.8 percent IRR and 1.6x multiple through March 31, according to the California Public Employees’ Retirement System.

Crestview recently exited two of its Fund I investments. It sold automotive seatbelt and airbag supplier Key Safety Systems to FountainVest Partners and the Canadian Pension Plan Investment Board in August. Two months earlier, Crestview sold Symbion Holdings, an operator of short-stay surgery centers, to an H.I.G. Capital portfolio company for $792 million.

Firm co-founder Barry Volpert, who owns a 34.7 percent stake in Crestview’s management company, will receive 27.5 percent of Fund III’s carry distribution. Co-founder Tom Murphy, who owns 13.9 percent of the management company, will receive 11 percent of the carry distribution. The remainder of Fund III’s carried interest will be distributed to its partners and principals.