Lindsay Goldberg Has Strong Finish For Fund III

Amid a buyout market fraught with funds limping slowly toward their targets, New York-based shop Lindsay Goldberg quickly surpassed the initial $4 billion target of its third fund and closed the vehicle with a total of $4.7 billion in pledges last month.

Lindsay Goldberg III LP wrapped on May 21 and received support from re-upping investors from Fund I and Fund II, as well as a new group of limited partners from North America, Europe and Asia, the firm said in a statement. The New York firm’s previous fund, Lindsay Goldberg II, closed in 2006 with $3.1 billion in commitments.

A regulatory filing for Fund III disclosed a minimum investment floor of $10 million for LPs interested in the vehicle that could be waived at the general partner’s discretion. New York placement agent Park Hill Group, a unit of The Blackstone Group, assisted with the effort, which reportedly kicked off in the first quarter of 2008.

The Canada Pension Plan showed plenty of loyalty to the firm. It committed $400 million to Lindsay Goldberg III after making a $250 million pledge to the fund’s predecessor and a $150 million investment to Lindsay Goldberg’s inaugural investment vehicle, according to the pension’s Web site. Other commitments to Fund III include a $20 million pledge from the Los Angeles City Employees’ Retirement System, and an investment of up to $45 million from California’s Alameda County Employees’ Retirement Association.

Lindsay Goldberg invests primarily in North American manufacturing, financial services and health care companies. The use of add-on acquisitions to build value in existing portfolio companies is an important aspect to Lindsay Goldberg’s overall strategy, as the firm has engaged in more than 55 follow-on acquisitions in its history, according to its Web site.

In January, the firm acquired the natural gas operations of PNM Resources Inc. for $640 million as an add-on to its Continental Energy Systems LLC. It was the third add-on for the gas and electricity transmission and distribution platform since it was acquired by Lindsay Goldberg in 2006.