Trivest to Launch $450M Third Fund –

Middle-market companies throughout the Southeast and Midwest can expect to see a lot more of Trivest. The Miami private equity firm on Monday sent out offering memoranda for its third fund, which has a target of $450 million.

Trivest has hired Deutsche Banc Alex. Brown to raise the fund, which will be marketed to a broader range of potential investors than was the case with previous efforts, said Earl Powell, chief executive of Trivest.

Deutsche Banc will show the fund to large pension funds and European institutional investors, among others. European L.P.s, Powell said, tend to be conservative, and Trivest’s strategy of investing in solid companies with long track records and steady cash flows may find support across the Atlantic.

Powell added his firm already has secured $200 million in commitments from existing L.P.s.

Trivest focuses on deals in the Southeast and Midwest with transaction values of between $30 million and $300 million. Powell said his firm tends to invest approximately $100 million per year.

Powell said roughly half of the deal equity put out by his firm while investing Fund II came from limited partners. In the firm’s $276 million acquisition of WinsLoew Furniture (BUYOUTS June 21, p. 10), Trivest committed $33 million in fund equity, while L.P.s co-invested $39 million. Powell said his firm will continue to provide co-investment opportunities in the third fund

Trivest’s last fund closed in 1996, rounding up $210 million.