Here Comes The Sun III Fund –

Looking to maintain its momentum from 2002, when it closed 16 deals, Sun Capital Partners on Jan. 10 closed its third fund at $500 million. Sun Capital Partners III fund is $100 million over target, and is two and a half times the size of its previous fund.

“Fund II is over 75% committed and invested, and we expect to continue being an active investor this year,” said Rodger Krouse, co-founder and managing director at Sun Capital. “We plan to deploy this capital over the next three to four years.”

Sun Capital’s participant list for this fund is a long one, and includes alumni from its previous funds, including DuPont, Goldman Sachs, Notre Dame, PPM America, The Wilton Private Equity Fund and Yale University.

Newcomers to Sun Capital funds include university endowments from M.I.T., University of Virginia, and Duke University, along with first-time fund-of-fund investors Adams Street Partners, CMS, Common Fund, Wilshire Fund, Private Advisors and Quellos. In addition to PPM, pension funds from The Ford Foundation, and the Government of Singapore round out the list of named investors. Sun Capital also received investments from high-net-worth individuals, families and trusts, but declined to mention names.

According to Krouse, Sun Capital primarily focuses on turnaround opportunities with revenue between $100 million and $500 million. Since its inception, Sun Capital has acquired more than 40 companies with combined revenue in excess of $4 billion.

Two of Sun Capital’s larger purchases in 2002 include the $400 million acquisition of Wickes Furniture and the $230 million purchase of Catalina Lighting.