Distressed specialist Wayzata may not raise a new fund

  • Wayzata likely to wind down existing investments
  • Formed in 2004 after spinout
  • Most recent fund closed in 2013

Wayzata Investment Partners, a distressed and turnaround investor, is contemplating its future and may forgo raising a new fund, according to three people with knowledge of the firm.

The people said the firm will likely not raise a new fund and will work to wind down existing investments. It’s unclear whether the firm has officially decided on that course of action.

Mary Burns, Wayzata’s chief compliance officer, did not respond to two requests for comment. Wayzata has shrunk its website to one page with no information other than a main telephone number.

Minnesota-based Wayzata spun out from Cargill Inc in 2004. It is led by Patrick Halloran, who also controls MAP Holdings LLC, Wayzata’s majority owner. As of Sept. 30, 2017, the firm managed about $2.7 billion in assets, according to its Form ADV.

Wayzata’s most recent fund, Wayzata Opportunities Fund III, closed on $2.7 billion in 2013, beating its $2.5 billion target. That was down from the firm’s second fund, which closed on $3.4 billion. Wayzata’s debut fund closed on about $1.2 billion in 2005, according to Palico.

Fund III was producing a 1x multiple and a 0.05 percent internal rate of return as of Sept. 30, 2017, performance information from Kentucky Retirement Systems shows. Fund II was generating a 1.86x multiple and a 16.38 percent IRR as of that date.

Fund I was generating a 1.43x multiple and a 8.45 percent IRR, Kentucky said.

Last year, Wayzata-backed Sundevil Holdings, which operated two gas-fired power plants in Gila Bend, Arizona, filed for bankruptcy.

Action Item: Check out Wayzata’s Form ADV here: http://bit.ly/2AbH7UB

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