- Fund V said to be oversubscribed
- Target is $800 mln, could raise $1 bln: sources
- Firm raised $600 mln for prior fund
Limited partners are finding it difficult to win a spot in the fifth buyout fund from Industrial Growth Partners, the San Francisco shop with at least two top-quartile funds under its belt, according to sources.
IGP’s Fund V has a target of $800 million, but it could raise as much as $1 billion, the sources said. It is not clear how much of that could be in the form of co-investment dollars.
A spokesman for Industrial Growth Partners declined to comment.
Park Hill worked as placement agent for Fund IV, according to a Form D filing. A spokeswoman for Park Hill declined to comment on whether the firm was engaged to work on Fund V.
IGP wrapped up Industrial Growth Partners IV LP in 2011 with $600 million in commitments.
Tracing its roots to 1997, IGP focuses exclusively on the manufacturing sector with a concentration on engineered products.
The firm said it raised $1.4 billion in equity capital for its first four funds, targeting platform companies with $25 million to $200 million in revenue, or smaller transactions for add-on deals, according to its website.
IGP said it works with an unnamed roster of blue-chip LPs to provide capital on deals, according to its website. Several Fortune 500 industrial companies are also investors in IGP. “This network helps IGP identify and diligence potential new investments,” the firm said on its website.
IGP said it’s never had a company go bankrupt and that it had no credit defaults in its portfolio during and after the Global Financial Crisis.
Industrial Growth Partners III, the firm’s vintage 2006 pool, rang up an IRR of 28.76 percent as of Sept. 30, 2014, for the Houston Firefighters’ Relief & Retirement Fund. That’s well ahead of the 14.4 percent threshold for top-quartile funds from that year, according to an analysis by Buyouts.
Industrial Growth Partners II, the firm’s vintage 2002 fund, notched a 30.33 percent IRR for the Houston Firefighters’ fund. The fund meets Buyouts’ top-quartile cutoff of 30.3 percent for that year.
In 2015, Industrial Growth Partners paid undisclosed sums to buy two companies: FMH Aerospace Corp and North American Substation Services LLC (NASS). In 2014, the firm purchased Grakon Holdings LLC, a lighting maker for the heavy truck and specialty transportation markets.
In 2012, the firm sold Xaloy Superior Holdings to Nordson Corp for $200 million. It sold O’Brien Corp to Ametek for about $175 million in the same year. In 2011, IGP sold Seaboard Holdings to The Weir Group for $675 million.
Action Item: Parties interested in discussing investment opportunities with IGP should contact Rob Austin at 415-882-4550, extenstion 313.
Photo: Customers crowd Macy’s department store in New York, getting an early start on “Black Friday.” REUTERS/Eric Thayer