Marwit Secures $50M Toward Third Fund

Firm: Marwit Capital

Fund: Marwit Capital Partners III LP

Target: $250 million

Placement Agent: None

Marwit Capital has accumulated about $50 million in commitments for a third fund earmarked for infrastructure, industrial products, industrial services and health care companies based in the western United States, Chris Britt, managing partner, told Buyouts.

The Newport Beach, Calif.-based buyout shop expects to hold a first close for Marwit Capital Partners III LP at $75 million to $100 million in the first quarter of 2010. The target for the fund, which was launched in early November, is $250 million. Marwit Capital executives hope to finish fundraising by the end of 2010, Britt said. Terms for the fund are presently at the industry standard “2 and 20.”

Far Hills Group, a New York-based financial advisory firm, helped Marwit Capital raise its second fund. The firm hasn’t retained Far Hills to help with Fund III, but the placement agent has helped introduce Marwit Capital executives to certain investors on an as-needed basis, Britt said. Since raising Fund II, Marwit Capital has cultivated its own relationships with potential investors, Britt added.

Marwit Capital targets companies that generate revenue between $20 million and $200 million and EBITDA between $4 million and $50 million. The firm closed Fund II, its first vehicle to include institutional money, at $184 million in 2007, exceeding its $175 million target. That fund holds 10 companies, including Granite Seed Company, a Lehi, Utah-based supplier of seeds that help restore eroded land, and Western Emulsions Inc., a Dana Point, Calif.-based company that makes products used in roadway asphalt.

Investors in that earlier fund included funds-of-funds managers Siguler Guff and WP Global Partners, as well as Banc of America Capital Access Funds, which manages money for the California Public Employees’ Retirement System and the California State Teachers’ Retirement Systems, among others. Britt said the firm won’t disclose investors in Fund III until after the first close.

Marwit Capital is looking to hire a principal and three associates to build on its 11-investment-professional staff.