Pegasus nears close on $750M

Pegasus Capital Advisors, a special situations investor backing companies that LBO firms typically avoid, is on the cusp of holding a final close on its $750 million-targeted fourth fund, says a source close to the firm. The firm raised $316 million for its third fund in 2004.

Founded in 1995, the Cos Cob, Conn.-based firm manages some $1.5 billion in assets, and it has made more than 65 mid-market investments.

The firm describes itself as a special situations “value buyer and business builder.” It often buys companies in sticky situations, not ripe for traditional LBO structures, then usually provides them with between $20 million and $75 million in capital as either debt or equity.