Morgan Keegan $150M FoF Set To Close

Firm: Morgan Keegan & Co.

Fund: Morgan Keegan Private Equity Fund of Funds II

Target: $150 million

Amount Raised: Almost $150 million

Placement Agent: None

Law Firm: Bass, Berry & Simms

Morgan Keegan & Co. has money to back another five to 10 buyout fund managers with its second fund of funds, a $150 million vehicle scheduled to close in the next few weeks and expected to be fully committed by the first quarter of next year, said a person familiar with the matter. About 150 wealthy and institutional investors backed the fund.

Morgan Keegan Private Equity Fund of Funds II is earmarked for 15 to 20 managers overall, half of them buyout funds, according to our source. So far the firm has made 10 commitments to distressed-investment funds, small buyout funds and mid-market buyout funds, and it is on the cusp of backing its first venture fund.

Owned by Regions Financial Corp., one of the largest banks in the country, Memphis-based Morgan Keegan provides asset management, securities brokerage and investment banking services in the southeastern United States. It put $50 million of its own money into the second fund. Morgan Keegan’s first fund of funds totalled $30 million.

The firm, which isn’t using a placement agent, hired Bass, Berry & Simms to provide legal advice.—M.C.