Fund Closes: Northwest Charts First Close On Fund –

Northwest Capital Appreciation held a first close of $50 million in March on Northwest Capital Appreciation Fund II LP. The target for the fund is $100 million to $150 million.

“The fund will look to invest $20 million to $40 million in fragmented industries in the middle market,” said Brad Creswell, a partner at Northwest Capital. The firm kicked off its fund-raising efforts early this year and anticipates a final closing on the fund at the end of the third quarter, said Creswell.

Investors in the fund include GE Capital, Massachusetts Mutual Life Insurance Co. and other institutional investors as well as high-net-worth individuals. Northwest Capital held a final closing on its debut fund, Northwest Capital Appreciation Fund I LP, in 1996 on $60 million.

Portfolio companies that were acquired by Northwest Capital Appreciation Fund I include New Northwest Broadcasters, which is a consolidation of 43 small-to-middle market radio stations in eight different markets in the Northwest; Port Townsend Paper Company, a pulp and paper company; Security Leasing Partners, a specialty finance company serving the security alarm industry; SLP Ventures, the nation’s 19th largest alarm company; and AM Cosmetics, a company that competes in the budget cosmetics industry.

Seattle-based Northwest Capital Appreciation was founded in 1992 and invests in strategic consolidations and growth recapitalizations of middle market companies with revenues in excess of $20 million, and which compete in fragmented industries in the U.S.