M/C Partners targets $450m for Fund IX, expects to close next month

M/C Partners is in the market with a ninth offering earmarked for investing in digital infrastructure and technology service sectors.

M/C Partners IX is targeting $450 million, according to Plymouth County Retirement Association materials, up from the $350 million raised by its predecessor in 2019.

The Boston private equity firm expects to wrap up Fund IX on September 30, PCRA documents say. As of June, the vehicle had secured more than $314 million, Form D fundraising filings show. Monument Group is the placement agent.

M/C Partners was founded in 1986 by David Croll and James Wade as a spin-out of the media and communications practice of TA Associates, according to PCRA documents. Croll reportedly headed the TA group.

Formerly known as M/C Venture Partners, the shop has roots in early-stage venture capital. It later evolved into its present-day focus on control opportunities in high-growth segments of digital infrastructure and technology services.

M/C is today led by managing partners Gillis Cashman, Brian Clark and Travis Keller, as well as Wade, who occupies the role of chairman, and Croll, who is a senior adviser.

M/C’s strategy emphasizes control-oriented growth equity, carve-out, consolidation and turnaround deals involving mid-market digital infrastructure and technology service companies in the US. Oftentimes a first institutional investor in a business, it typically writes equity checks of $10 million to $50 million.

Target companies have durable models, attractive unit economics, high barriers to entry and significant customer switching costs, PCRA documents say. Post-investment, the onus is placed on improving operations and accelerating growth alongside new or existing management teams.

M/C reports investing $2.4 billion in 140-plus companies over more than three decades. One of its best-known investments is metro fiber and bandwidth provider Lightower, acquired with Pamlico Capital in 2007 from National Grid and sold in 2013 in a $2 billion merger led by Berkshire Partners.

Among its more recent deals, M/C in May announced a growth investment in Celito, a local communications and managed services platform. Earlier, it invested in the combination of internet service providers Everywhere Wireless and SilverIP, rebranded in January as Zentro.

M/C Partners VIII was generating a 14.5 percent gross IRR and a 9.5 percent net IRR as of March, PCRA documents show. Fund VII was earning a 27.3 percent gross IRR and a 21.8 percent net IRR.

The firm did not respond to a request for comment on this story.