Versa Capital Scores $650M For Fund II

In a further indication of strong interest from limited partners in distressed investments, Philadelphia-based turnaround shop Versa Capital Management Inc. has closed its second fund slightly above target.

Versa Capital Fund II LP held a final close in April, wrapping with $650 million in capital commitments. The fundraising effort lasted roughly a year. The target for the pool, which had secured nearly $380 million in pledges as of September 2008, was $600 million. LPs include Pennsylvania Public School Employees’ Retirement System and Pennsylvania State Employees’ Retirement System.

The firm has already made a number of deals from the fund, including its acquisition, along with co-investor Crystal Capital, of shoe and clothing retailer Bob’s Stores Inc. from TJX Cos. in August 2008. Terms weren’t disclosed.

Versa Capital looks to purchase North American-based businesses with annual revenue of between $50 million and $1 billion, and assets ranging from $25 million to $500 million. It primarily targets special situations, including DIP financings, Chapter 11-related bankruptcy restructurings and liquidations, but it also gets involved with buyouts, divestitures, recapitalizations and spinoffs.

Formerly known as Chrysalis Capital Partners Inc., Versa Capital’s principals include Gregory Segall, managing partner, as well as partners Paul Halpern and Raymond French.