Returning investors in the second fund include Adams Street Partners, Allianz Private Equity Partners, Goldman Sachs Asset Management and New York Life Capital Partners. New investors included Soros Strategic Partners, Blue Cross Blue Shield of Arizona, Danske Private Equity and a number of university endowments and foundations.
The first investment for fund II is the acquisition of a controlling stake in CareCentrix, a provider of home health care services. The firm co-invested with Gentiva Health Services Inc., which was the parent company of CareCentrix. —Michael Baron
Circle Peak partner launches new firm
Poerink was one of two partners at Circle Peak, where he led the firm in more than $400 million in investments, mostly in the consumer products industry.
Similar to Circle Peak, Linley Capital will be fundless, securing investments from high net worth individuals and families. Unlike Circle Peak, Linley will have the flexibility to invest across sectors and continents. And it has the backing of LJH, allowing it to invest up to $800 million on deals. That is an upgrade from Circle Peak’s $500 million cap.
“To myopically focus on one sector or geography would disadvantage ourselves,” Poerink said.
Poerink said that he will continue working with Circle Peak portfolio companies. He still sits on the boards of Rocket Dog Holdings, a shoe company, and Luxury Optical Holdings, a retail eyewear chain, which Circle Peak owns.
Poerink said he plans to tap a growing pool of operational advisors for opportunities in various sectors, such as steel manufacturing and beverages. —Erin Griffith
Platinum Equity raises $2.75B
“Fund-raising was basically done for all intents and purposes by the end of Q1,” says Principal Mark Barnhill. “It just took a bit longer to get to the official finish line with a couple of LPs, so we waited.”
Platinum began pre-marketing the fund in late 2006 with a $1.5 billion target, which was twice the size of its first institutional fund raised in 2004. The firm, which started in 1995, previously invested funds raised solely from the personal fortunes of founder Tom Gores.
Barnhill says that current market conditions prompted the firm to expand the fund to $2.75 billion, rather than contract it.
“We focus on operationally underperforming and under-managed businesses in need of operational capabilities on the ground to facilitate turnaround,” Barnhill says. “From that perspective, it’s a more target-rich environment than it was when we began fund-raising… We’re willing to take on substantial operational risk, but like to minimize financial risk.”
Platinum’s second fund is about 30% deployed in five portfolio companies, including Covad Communications Group, 3B The Fiberglass Co., Tecumsah Power Co., Wheel Pros Inc. and Ryerson Inc. —Dan Primack
American Industrial forms $405M fund
The New York-based firm raised just under $240 million for its third fund, which closed in 1999.
For fund IV, about 60% of the capital commitments made by the fund’s 24 LPs came from new backers, says Partner Kim Marvin.
New LPs include
Since April 2007, the firm has invested $50 million combined on three acquisitions from the new fund with a fourth acquisition expected to close in a few weeks. The firm intends to invest in 10 to 12 deals at a rate of three per year, focusing on corporate carve-outs of U.S. industrial companies. —Nancy Gordon
CLSA launches water fund
Hong Kong-based CLSA, a unit of French lender Credit Agricole, joins a growing number of firms pursuing water as an investment theme, such as Swiss bank Pictet, which launched its Water Fund PICTET26 in 2000.
A Pictet fund manager last year estimated the United States needs to invest $1 trillion in water infrastructure over the next two decades and said annual spending of up to $80 billion is needed globally. —Reuters
Guggenheim eyes energy fund
The Chicago-based firm has already secured about $150 million from limited partners, including Midland National Life Insurance.
Prudential pulls in $200M for first close