Halifax Hits Market With Second Fund –

The Robert M. Bass Group has turned out some of the biggest names in the buyouts industry. Oak Hill Capital Partners, Texas Pacific Group and Colony Capital are three of the more recognizable buyout shops with Bass pedigree, but in the smaller end of the deal spectrum, The Halifax Group has quietly built its name as well. And the firm, according to Form D filings with the SEC, has started raising its second buyout fund.

The fund has a stated goal of $300 million, which if reached, represents a jump over Halifax’s inaugural vehicle. The firm closed its first fund in 1999 at $200 million. Halifax has already amassed $72.5 million for the new fund, which includes commitments from 10 accredited investors. Rosebud Partners II, LP, Mellon Bank, N.A. (as Trustee for the Bell Atlantic Master Trust) and SunAmerica were all identified as limited partners in the new fund.

Halifax, according to the filing, will accept a minimum investment of $5 million, although the firm has reserved the right to accept lesser amounts at its discretion. No other fund terms were disclosed and no placement agent was mentioned in the filing. The firm’s inaugural vehicle had an 80%/20% carried interest split and 2% management fee.

Halifax generally invests between $10 million and $30 million per deal, and targets companies with enterprise values of between $30 million and $350 million. The firm has offices in Dallas, Washington, D.C., Los Angeles and Raleigh-Durham, N.C. and pursues traditional management buyouts, growth capital infusions, industry consolidations and special situation investments.

Halifax was founded by former Carlyle Group Managing Director David Dupree and William Rogers, the former CFO of the Bass Group and a founding partner of Colony. David Bonderman, of Texas Pacific Group fame, and Thomas Barrack, of Colony Capital, are also listed as founding partners on the Halifax Web site.

The firm does not identify any specific sector focus, and its investments have ranged from technology businesses to packaging companies. Most recently, Halifax acquired Rinker Group subsidiary PolyPipe, a maker of polyethylene pipes and pipe liners. Prior to that, Halifax acquired Meineke Car Care, teaming up with Carousel Capital for the deal, and Universal Hospital Services, in which Halifax joined J.W. Childs Associates, a previous investor in the company.

The most recently announced exit for the firm came in 2001, when Halifax unloaded its investment in software maker MTW Corp., realizing a return of roughly 2x its equity. Halifax had been looking to take InSight Health Services public, although the firm pulled the offering late last year.