Marlin Equity Partners, which closed its fifth flagship fund in 2017 at $2.5 billion, is seeking $900 million for a third heritage offering earmarked for small-cap buyout opportunities.
The target for Marlin Heritage III was disclosed at the end of September by the Los Angeles private equity firm in Form D fundraising documents. Credit Suisse is the placement agent.
If successful, Fund III would bring in 20 percent more committed capital than its predecessor, wrapped up four years ago at $750 million. It would be more than twice the size of Fund I, which secured $400 million in 2014.
Marlin’s heritage fund platform was established to invest in lower-mid-market companies using the same core strategy deployed through its flagship vehicles, according to pension documents.
As such, Fund III is expected to make control-oriented equity investments in small North American businesses through carve-out, growth, MBO, public-to-private and special situations deals. Marlin has traditionally been associated with operationally focused turnaround investing in the mid-market.
In addition, Fund III is expected to source dealflow in software and technology sectors, an especially active area of Marlin investing. Other sectors of interest include healthcare and services. In the past, the firm also pursued opportunities in consumer and manufacturing.
Marlin’s heritage fund series began with a solely North American mandate. A European version of the strategy was introduced with the 2016 close of an inaugural vehicle. The firm created a presence in the region in 2012 by opening an office in London.
Earlier this year, a second European fund was closed. Heritage Europe II brought in €675 million ($780 million), more than double the size of its predecessor.
Marlin, which manages more than $7.6 billion in capital, was founded in 2005 by chairman and CEO David McGovern, formerly the head of mergers and acquisitions at Gores Technology Group. It reports completing over 185 acquisitions since inception.
Marlin two years ago sold a minority interest to Blackstone Strategic Capital Advisors, the private equity giant’s GP stakes arm.
The firm did not respond to a request for comment on this story.