Tesla, SpaceX Backer To Seek $350M For Fund III

Firm: Valor Equity Partners

Fund: Valor Equity Partners III LP

Target: $350 million

The firm will seek $350 million for the fund, Valor Equity Partners III LP, the source said. The firm has not yet officially launched the process but will soon, the source said.

Valor Equity raised $300 million for its previous fund in 2007. Past investors have included the California State Teachers’ Retirement System, Invesco Private Capital and the Houston Municipal Employees’ Retirement System, according to the Dow Jones Directory of Alternative Investment Programs.

Valor Equity targets buyouts and minority investments in a variety of industries, including industrial products and manufacturing; infrastructure and industrial maintenance; and consumer and restaurants, among others. It typically invests $10 million to $30 million of equity into companies posting EBITDA of $5 million to $15 million.

The firm’s portfolio includes Tesla Motors, maker of the high-performance electric cars; Family Health Services, a provider of skilled nursing and other home care services; Sizzling Platter, a restaurant operating company; and SpaceX, a developer of vehicles for space transportation. Dragon, a spacecraft that SpaceX designed, recently traveled and attached itself to the International Space Station, according to an Oct. 8 press release from the company.

CEO Antonio Gracias, who previously had founded another private equity firm called MG Capital, founded Valor Equity in 2001. The firm has about 11 investment professionals.