Moelis Capital spinoff NexPhase targets $500 mln on debut

Newly-launched NexPhase Capital, a lower middle-market firm led by former members of Moelis Capital Partners, is seeking $500 million for its first fund, according to a source.

NexPhase calls the fund NexPhase Capital Fund III, LP because it’s the same team that raised two earlier funds for Moelis Capital Partners, which formed in 2007, according to a source.

While NexPhase maintains a strategic relationship with Moelis & Co and Moelis Asset Management, it now bills itself as an independent private equity firm specializing in control investments in growth-oriented companies with EBITDA of $5 million to $30 million, according to its website.

Spokespeople for NexPhase Capital and Moelis declined to comment.

Led by managing partners Kurt Larsen and Ted Yun, the NexPhase Capital team of 14 investment pros focuses on healthcare, financial services, software and consumer deals.

NexPhase, which announced its launch in January, also manages about $872 million in legacy assets from Moelis Capital Partners.

The New York firm has yet to announce an acquisition under its new name, but it has some recent deals under its belt while it was still working as Moelis Capital Partners.

In September, Moelis Capital Partners paid an undisclosed sum to invest in Flexible Architecture and Simplified Technology LLC, a software provider for the life insurance industry.

Back in June, Moelis Capital Partners and Audax Private Equity completed the sale of two former units of Quest Specialty Chemicals Inc for an undisclosed sum. The units, which covered Quest’s former automotive and industrial products businesses, rang up combined sales of $140 million in 2014, according to a statement from Valspar.

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