Firm: Milestone Partners
Fund: Milestone Partners III LP
Target: $200 million
Placement Agent: None
The St. Davids, Penn.-based lower mid-market buyout shop recently held a third closing at $174 million on the fund, which has a $200 million target. The expected size of
Though considered a third fund, the latest effort is Milestone Partners’s second pool funded by institutional investors, including the
Milestone Partners invests $5 million to $25 million in deals valued between $15 million and $100 million. It prefers backing companies with a three-year track record of profitability, with enterprise values of between $10 million and $100 million, generating revenues of between $10 million and $100 million, and EBITDA between $3 million and $15 million. Sectors of interest include manufacturing, distribution, natural and organic products, and service sectors. Milestone Partners typically holds companies between four and seven years.
The firm has been on a bit of tear this year, even as many other firms have curtailed deal-making given the credit crunch. It’s made five investments, including three out of Fund III in June: Safemark Systems LP, an Orlando-based company that provides in-room safes and locking systems to hotels; Café Enterprises Inc., a Taylors, S.C.-based owner of a restaurant chain in the Carolinas, Tennessee, Georgia and Virginia; and Global Connection Inc., an Atlanta, Ga.-based company that provides pre-paid telephone services.