MidOcean Partners, the New York and London-based buyout firm spun out of Deutsche Bank three years ago, is targeting US$1bn for its latest fund.
The firm already manages more than US$3bn from an initial and interim vehicle. Its previous investors include Bregal, Coller Capital, CPP Investment Board, HarbourVest Partners, AlpInvest Partners, Northwestern Mutual, Ontario Teachers’ Merchant Bank, Paul Capital Partners, Presidential Life, Sun America and The Yucaipa Companies.
The firm has been building up its team under its New York and London heads, Ted Virtue and Graham Clempson, respectively, and has acquired six companies in the past 18 months, of which four have been in the US.
Last month, MidOcean bought water parks operator Palace Entertainment and sold its majority stake in Vitaquest International to Hong Kong trade company CK Life Sciences International only a year after making the investment. In the UK, MidOcean bought exercise clubs group LA Fitness for US$263.7m.
MidOcean was formed after buying Deutsche Bank’s on-balance sheet portfolio companies in a secondary deal worth €1.6bn. It also advises on Morgan Grenfell Private Equity’s portfolio, which includes Italian scooter maker Piaggio.