ICV Partners closes Fund III at $400 million

Firm: ICV Partners

Fund: ICV Partners Fund III

Target: $400 million

Amount raised: $400 million

Placement Agent: MVision

“We’re generalists but focused on common functional areas, management issues … figuring out distribution channels, improving organic growth and other areas,” Willie Woods, president of ICV Partners, said in a phone call with Buyouts. “We have a lot of capital to put to work and we’re looking for good deals.”

Woods said ICV is currently looking at seven or eight possible acquisitions, but pricing “is out of control” on some fronts. ICV limits its leverage on deals to equity and senior debt.

“We try to be disciplined around price,” he said. “We’re being more careful about where we spend our time looking for deals. When you start out, you look at everything, but after a while you start to know which deals will work.”

ICV has already made two investments out of the fund: a new platform, Puerto Rico-based American Alliance Dialysis Holdings LLC; and pain management firm Interventional Management Services LLC, based in Atlanta.

ICV surpassed the $313 million it raised in 2006 for ICV Partners Fund II and it added new LPs. Woods said the fundraising effort for Fund III took about two years for ICV, which was founded in 1998.

LPs in ICV III included a majority of returning investors from ICV’s initial funds and a “broad new group of domestic investors that include corporate, family offices and public pension funds,” according to a prepared statement.

The firm plans to continue its strategy of providing operational and financial support to small businesses and entrepreneurial management teams to improve  performance.