Wingate, Whose Debut Fund Was A 6x, Sets $253M Goal For Fund V

Dallas-based Wingate Partners plans to seek $253 million for Wingate Partners V LP, according to a regulatory filing. The target is a moderate bump from its $190 million Fund IV, from which it is now investing. The filing, from June 21, indicated that the fund has had no sales yet, and the document lists no placement agent. A companion filing also showed the firm has established a second vehicle, called Wingate Affiliates V LP, which listed no fundrasing target.

Wingate Partners, a mid-market buyout shop founded in 1987 by Frederick B. Hegi Jr, who formerly had been president of Valley View Capital Corp, typically does deals of $25 million to $100 million for targets with revenues between $50 million and $250 million.

The firm favors industries in transition and under-performing companies, according to its website. It seeks to acquire one to two new companies per year, often manufacturing, distribution and service businesses, according to its site, but not financial services, media, natural resources or technology companies. The website lists eight investment professionals and three operating partners at the firm.

Historically, the firm has been a top performer. With a return multiple of 6.08x and an IRR of 30.34 percent, according to investor University of Texas Investment Management Co, the firm’s inaugural 1987 vintage fund is the best performer ever in the Buyouts fund performance database.

Fund II, a 1995 vehicle, scored a 1.96x return multiple and an IRR of 23.50 percent, while Fund III, from 2000, earned a 2.91x return multiple and 22.36 percent IRR, as of February 2012, according to UTIMCO.

The firm is investing out of the 2007 vintage Wingate Partners IV LP, a $190 million pool raised just before the economy collapsed into a severe economic slump followed by a financial crisis. That fund was about three -quarters drawn as of February 2012, according to UTIMCO, which shows a 0.76 return multiple and a -9.21 percent IRR thus far on its investment.

The firm has maintained a moderate pace on deploying its capital. Last October, the firm acquired Nekoosa Coated Products, a maker of specialty paper products, from Dunsirn Partners of Appleton, Wisconsin and PS Capital Partners of Milwaukee. Terms were not released.

Wingate Partners sold Industrial Container Services LLC, a provider of reconditioned containers, in August 2011 to Los Angeles-based buyout shop Aurora Capital Group. Terms were not disclosed.

The firm did not respond by deadline to a request for comment.