Hall Capital Partners Sets Out For Fund II

Hall Capital Partners has launched fundraising for its second Midwest-centric buyout and growth capital fund.

The firm is targeting $100 million for the new vehicle, Hall Capital Partners II LP. As of Feb. 24, no capital had been committed to the fund, according to a regulatory filing.

The Oklahoma City-based general partner intends to collect annual management fees of up to 2.5 percent of the total amount raised for Fund II, and it has set a $1 million minimum investment limit for outside investors looking to make a commitment, according to the filing. No placement agent has been hired to help solicit pledges to the fund.

Hall Capital Partners, the buyout and growth equity firm, should not be confused with Hall Capital Partners LLC, the New York-based asset manager that oversees approximately $20 billion in assets.

The buyout and growth equity firm makes investments of $2 million to $25 million in businesses generating revenues of between $10 million and $100 million. Preferred industries include manufacturing, distribution or services, while the firm’s nationwide investment mandate tends to favor the Midwest. The typical hold period for the firm, which also has an office in Lake Forest, Ill., is five to seven years.

The Hall family, which made its fortune from its auto services company Fred Jones Enterprises, is the largest investor in Hall Capital Partners’s first fund. The remaining 11 investors in Fund I are mainly individuals and family investment offices.

Executives of Hall Capital Partners did not return phone calls seeking comment, and the size of the firm’s first fund could not be determined by press time. According to the firm’s Web site, however, Fund I is steward to at least seven portfolio companies.

Exits for Hall Capital Partners include the 2006 sale of Greene’s Energy Group, an oil and gas services provider, to buyout firm Denham Capital Management; and the 2005 sale of Gexa Energy Corp. a retail electric services provider, to FPL Group Inc., a Juno Beach, Fla.-based electric and gas utility.