Mill City’s Sophomore Fund Targets $200M

This time around, Mill City hired placement agent Sixpoint Partners, after listing no placement agent on its debut fund.

Darren Acheson, managing director of Mill City Capital, did not return a phone call and an email from Buyouts seeking comment. Acheson’s name appears on the Form D filing for Mill City Fund II LP, along with those of managing directors and co-founders Michael Israel and Lisa Kro.

While at Goldner Hawn, Acheson led or co-led investments in Houlihan’s Restaurants, Specialty Commodities Inc and Vitality Foodservice Inc, according to Mill City’s website.

Mill City is targeting control-oriented equity investments in the Midwest in companies with EBITDA of at least $7.5 million and less than $25 million, according to its website.

Mill City Fund LP raised $48 million out of a target of $100 million from 11 investors, according to the firm’s Form D filing on May 2, 2011. Investments from Fund I included Union Tractor, Wholesale Produce Supply, Renaissance Power Systems and JMH International, according to the firm’s website.

Fund I’s Form D was initially filed in 2010. The fund was formerly called Marathon Fund Limited Partnership VI, the fund series managed by Goldner Hawn Johnson & Morrison.

The 2004-vintage Marathon Fund Limited Partnership V fund rang up an investment multiple of 1.7x as of March 31, 2013, according to data compiled from the Oklahoma Police Pension & Retirement System, which committed $10 million with the fund.

Mill City Capital takes its name “in honor of the entrepreneurial spirit which took hold on the banks of the upper Mississippi River” in Minneapolis as the large-scale flour milling industry emerged 125 years ago, according to the firm’s website.