Lindsay Goldberg enters home stretch with $4bn Fund V

The fund is expected to hold to Lindsay Goldberg's strategy of investing in North American and European mid-market companies in business, financial and government services, consumer, healthcare and industrials sectors.

Lindsay Goldberg has secured more than $3 billion toward a $4 billion target for its fifth flagship buyout vehicle, a Form D fundraising document showed.

If Lindsay Goldberg V reaches the goal, it will be 11 percent larger than its predecessor, which closed in 2015 at $3.6 billion, according to PEI data. Fund IV reportedly fell short of a $4 billion target, possibly because of organizational changes, including the 2015 departure of partner Andrew Weinberg to form Brightstar Capital Partners.

Fund V raised commitments from 95 limited partners, the Form D document showed.

Disclosed investors include California Public Employees’ Retirement System, which committed $250 million, New York State Common Retirement Fund ($300 million), Pennsylvania Public School Employees’ Retirement System ($150 million), Public Employee Retirement System of Idaho ($50 million) and State of Wisconsin Investment Board ($200 million).

Lindsay Goldberg was founded in 2001 by CEO Alan Goldberg and chairman Robert Lindsay, both former senior executives with Morgan Stanley Private Equity. The New York firm specializes in making control investments in mid-market companies, many of them family- or founder-owned, in business, financial and government services, consumer, healthcare and industrials sectors in North America and Europe.

Fund V is expected to maintain this strategy, investing $150 million to $500 million in businesses initially or over time, according to a 2018 report by Pennsylvania PSERS.

Lindsay Goldberg’s portfolio holds 18 companies, the firm’s website shows, several of them added in recent months. They include Amentum, a provider of professional and technical services to governments, acquired earlier in 2020 by Lindsay Goldberg in partnership with American Securities. The seller was Aecom.

In addition, Lindsay Goldberg in 2019 acquired three businesses: Creation Technologies, a provider of electronic manufacturing services; Liveo Research, formerly Bilcare Research, a packaging business; and stayAPT Suites, formerly Affordable Suites of America, an operator and franchisor of extended-stay hotels.

Lindsay Goldberg was also selling portfolio companies in recent months, among them VDM Metals, a producer of nickel alloys acquired in 2015 from ThyssenKrupp. Late last year, the firm agreed to sell VDM to Acerinox for €532 million.

Goldberg and Lindsay oversee a nine-person partnership team, most of whom have been with the firm for at least 14 years, according to the Pennsylvania PSERS report. They include John Aiello, Michael Dees, Eric Fry, Brian Kelley, Christopher Laitala, Jacob Lew and Russell Triedman. Stephen DeFalco, previously a partner, now runs Creation Technologies, his LinkedIn profile shows.

Lindsay Goldberg IV generated a net IRR of 32.1 percent and an investment multiple of 1.5x as of June 2019, according to a CalPERS report.

Lindsay Goldberg did not respond to a request for comment on this story.

Action Item: See Lindsay Goldberg’s ADV filings here.