Firm: LLR Partners
Fund: LLR Equity Partners IV LP
Target: $800 million, with $1 billion hard cap
Amount Raised: $950 million
Philadelphia-based LLR Partners set an $800 million target and $1 billion hard cap for its fourth buyout fund, as it targets companies typically with less than $100 million in revenue in six key categories: business services, financial services, health care services, security and government, and software and information technology services, according to a PSERS meeting packet.
The buyout pool, which had been in the fundraising market since 2012, has made four investments: Acre, iJet, Logi Analytics and Ultisat. All four of these deals took place in 2013.
Mitchell Hollin, a partner at the firm, said LLR Partners continues its “collaborative approach to working with middle market companies that have an opportunity to become leaders in their industry niches,” according to a prepared statement.
LLR Partners said long-time staff members Todd Morrissey and David Stienes were promoted to partner for LLR IV, joining the existing senior team of Hollin, Seth Lehr, Ira Lubert, Scott Perricelli, David Reuter and Howard Ross.
Consulting firm Portfolio Advisors recommended PSERS make a $200 million commitment to LLR Equity Partners IV, upping its past commitments to the firm. A letter to the PSERS board of trustees from Portfolio Advisors said LLR Partners would commit $28 million to the fund.
PSERS committed $187.5 million to the 2008 vintage LLR Equity Partners III, $75 million to LLR Equity Partners II and $62.5 million to LLR Equity Partners LP.
As of June 2012, LLR owned 10 portfolio companies with 3,615 employees in Pennsylvania, the pension fund noted.
“LLR is the established leader in lower middle market investing as the have been investing in this space for over 13 years,” according to the PSERS meeting packet.
LLR Equity Partners LP rang up an IRR of 21.9 percent as of of June 30, 2013, for PSERS. LLR Equity Partners II’s IRR was 13 percent and LLR Equity Partners III’s IRR was 15.8 percent.
LLR Equity Partners did not reply to an email seeking comment.