SunTX Capital Partners late last year held a $120 million first close on its fund devoted to middle-market buyouts in the Sunbelt region. The Dallas-based firm is looking for a total of $130 million for the new investment vehicle, named SunTX Fulcrum Fund.
Limited partners on the first close included the Colorado Public Employees’ Retirement System ($15 million commitment), Bain & Co., Crescent Diversified, the pension funds of MM Services and Shell Netherlands and the University of Chicago’s endowment. The fund’s general partners – Todd Boyd, Richard Boyle, Ned Fleming, Craig Jennings and Mark Matteson – will invest $6.5 million of their own capital in the fund.
Along with a 2% management fee and an 80%/20% carried interest split, the fund also carries a clawback agreement. Forum Capital Partners LLC of New York is acting as placement agent for the fund, which will roll over half of its anticipated profits into a subsequent vehicle.
In late January, SunTX teamed up with BancBoston Capital and Harlingwood Equity Partners to acquire Interface Security Systems LLC, a St. Louis-based security alarm company. The terms of that deal were not disclosed.