Insight Equity halfway to Fund III’s $750 mln target

Firm: Insight Equity

Fund: Insight Equity III LP

Target: $750 million

Amount Raised: $399 million

Southlake, Texas-based Insight Equity began marketing for Insight Equity III LP last spring, as peHUB reported at the time. Fund III has a $750 million target. This means Insight Equity has raised about 53 percent of its $750 million goal.

Insight had hoped to hit a first close on its third fund by last summer. Instead, Fund III collected $309 million for a first close in December, an SEC filing indicates.

Insight Equity’s third fund is much bigger than its prior buyout pool. In 2010, the Texas firm collected $525 million for two funds. This included $435 million for Insight Equity II LP and $90 million for Insight Equity Mezzanine I LP. (The firm had sought $500 million for its second equity fund and $250 million for a mezz pool, according to SEC filings.) Insight Equity’s first fund closed at $280 million in 2006.

Performance data for the funds was not immediately available.

Insight Equity targets mid-market companies in manufacturing and distribution, as well as energy services. The firm typically invests from $25 million to $75 million equity per deal.

In January, Insight acquired Midstate Berkshire from Precision Holding, which is backed by Cerberus Capital Management and SAC Capital. Midstate appears to be Fund III’s first investment, according to the firm’s website.

The firm also recapped Atwood Mobile Products, a Fund I deal, in October. The Atwood recap produced a dividend to shareholders, a statement said. Atwood also acquired Aircommand Australia.

Executives at Insight did not return calls for comment.

Luisa Beltran is a senior writer for peHUB.