Irving Place Delays Launch Of Fourth Fund; Gets 2nd Extension On Third

Firm: Irving Place Capital

Fund: Irving Place Capital Partners IV

Target: $1.5 billion to $2 billion

New York-based Irving Place, the former Bear Stearns Merchant Banking, had been expected to come to market late last year. The target for Irving Place Capital Partners IV was anticipated to be $1.5 billion to $2 billion, peHUB has reported. Those plans are apparently on hold. Irving Place is not thinking about a new fund for at least another 12 to 15 months, the source said.

The delay comes after LPs earlier this year granted Irving Place a two-year extension to invest its current fund, the 2006 vintage Fund III, until February 2015, sources said. The extension was the second green-lighted by the firm’s investors. Previously, the LPs had given the firm a one-year extension on Fund III’s investment period until 2013, peHUB has reported.

Irving Place, because it doesn’t have to worry about deadlines, is currently focusing on its portfolio and making new investments, a source said.

The firm’s last fund, Irving Place Capital Partners III LP, collected $2.7 billion in 2006. Irving Place has about 25 percent of Fund III left to invest, a different source said.

Before it begins fundraising, Irving Place is trying to accumulate a few strong exits from Fund III to gain momentum, one placement agent said. Irving Place agreed in July to sell Multi Packaging Solutions to Madison Dearborn Partners. Irving, along with Oaktree Capital Management, also announced this month that they were selling paper packaging product maker Chesapeake to The Carlyle Group. Multi Packaging, however, came from Irving’s Fund II, while Fund III invested in Chesapeake, according to LBO Wire.

“They need big, very profitable exits,” the placement source said.

Irving Place executives could not immediately be reached for comment.

Luisa Beltran is a senior writer for peHUB.