Sentinel Capital To Market Fund V In ’13

Sentinel Capital Partners is expected to begin fundraising for its next pool in early 2013, two placement sources told sister Web site peHUB.

It’s unclear what size fund the New York-based private equity will be targeting for Sentinel Capital Partners IV LP. However, fundraising should be quick, one person said. “They’re a really strong performer,” the source said.

In 2008, Sentinel Capital raised $765 million with its fourth buyout fund, nearly 28 percent above its $600 million target. Sentinel Capital Partners IV LP has produced a 32.5 percent net IRR, according to Dec. 31 data from the California Public Employees’ Retirement System.

Sentinel focuses on the lower mid-market and targets companies with less than $35 million EBITDA for platform deals. Sectors include consumer, food/restaurants, health care and industrials. The firm will provide from $20 million to $90 million equity per deal although its sweet spot is investments ranging from $30 million to $70 million, according to the firm’s Web site.

The shop has been busy exiting investments recently. Sentinel said it was selling Massage Envy, which provides massage therapy and facial treatments across the United States, to Roark Capital. Sentinel acquired Massage Envy in January 2010. Sentinel, in July, also sold LTI Boyd, which makes custom engineered components. The investment dates back to 2006 when Sentinel recapped LTI Flexible Products.

Sentinel recently exited two investments that it made in 2007. Sentinel sold Inscape Publishing, which provides assessment and training products that develop interpersonal skills, to John Wiley & Sons in February in an $85 million deal. In November, Sentinel also sold Trinity Consultants to Gryphon Investors.

Sentinel still has been putting capital to work, however. In April, the firm acquired Colson Group, a producer of industrial casters, wheels and hardware-related products. Sentinel bought Huddle House, a restaurant chain, that same month. In March, National Spine & Pain Centers, a Sentinel portfolio company, acquired Capital Spine & Pain Centers. Sentinel, in October 2011, bought WellSpring Pharmaceutical Corp., a North American maker and marketer of over-the-counter and specialty prescription pharmaceuticals.

A Sentinel spokesman declined comment.

(Luisa Beltran is a senior writer for peHUB.)