Marwit Capital Sets $225M Target For Fund III

Marwit Capital, a micro-cap buyout firm, has launched marketing of its third formal buyout fund with a target of $225 million, according to a source familiar with the situation.

The Los Angeles-based shop has yet to hold a first close on Marwit Capital Partners III. The target for Fund III is a modest step-up from its predecessor. Marwit Capital II, which closed in September 2007 with pledges totaling $183 million, originally sought $175 million.

Limited partners in Fund II included Banc of America Capital Access Fund, which manages money from the California State Teachers’ Retirement System (CalSTRS), the California Public Employees’ Retirement System (CalPERS) and Bank of America. Other investors were Arlington Partners, Keystone Private Equity, Siguler Guff, and WP Global Partners.

Marwit Capital makes investments of $10 million to $20 million in businesses with annual revenue ranging from $15 million to $125 million. The shop got its start as an SBIC in the 1960s, investing in various parts of the capital structures of middle market companies. Marwit Capital is run by Chris Britt and Matthew Witte, who launched the fund’s more formal buyout-related efforts in the mid-1990s.

Portfolio companies include Boot Barn, a western-themed specialty retailer; Fire Grill LLC, a Burger King franchisee; Gregg Gift Co., a maker of licensed giftware products for Christian retail stores; Traffic Control & Safety Corp., a traffic control services business; and T and T Industries, a maker of twist ties.

The firm did not respond to press inquiries.