Pharos Fund III wrapping up long fundraise at $500 mln, above target

Firm: Pharos Capital Group

Fund: Pharos Capital Partners III LP

Target: $400 mln

Amount raised: $500 mln

Pharos Capital Partners III LP has collected about $450 million in commitments thus far, but expects to reach a final close of $500 million, ahead of its $400 million target, according to a source.

The firm has been out in the market since 2010 for the fund, and now it’s nearing the finish line, more than six years after its most recent buyout vehicle.

The vintage 2006 Pharos Fund II, which raised $400 million, logged an IRR of 10.08 percent as of Dec. 31,  2012, for Los Angeles City Employees’ Retirement System,  according to data compiled by Buyouts.

Pharos, which primarily invests $10 million to $30 million in companies seeking later-stage funding for growth and leveraged buyouts, had raised $170 million in the middle of 2012, Buyouts reported last year.

Among the firm’s deals, Humana Inc last year bought a stake owned by Pharos in MCCI Holdings LLC, a provider of care to Medicare beneficiaries.

Among the LPs for Fund III, the Louisiana Teachers Retirement System committed up to $35 million and the Dallas Police & Fire Pension System committed $50 million, according to reports.

Youngblood currently serves as a director of Starwood Hotels, Burger King, Gap Inc and Energy Future Holdings Corp. A Princeton University graduate, he received an M.D. degree from the University of Texas.

Pharos Capital co-founders Robert Crants and Michael Devlin are both former executives at Goldman Sachs. Crants was a founding member of the firm’s Special Investments Group, while Devlin was a vice president and founding member of the Business Development Group.