Pfingsten Partners has held an above target final close of its fifth investment fund, Pfingsten Partners Fund V, LP, with capital commitments of $382 million.
Pfingsten invests in middle market manufacturing, distribution and business services companies. Since founding in 1989, Pfingsten has acquired 110 such companies through four funds with total commitments of $1.3 billion. The firm is based in Chicago with additional representative offices in India and China (www.pfingsten.com).
“We have been disciplined and consistent with our investment strategy over the past 27 years”, said Founder and Senior Managing Director, Thomas Bagley. “As a result, we are in the fortunate position of exceeding our $350 million fundraising target.”
As with earlier funds, the firm will invest in middle market companies with transaction values ranging from $15 million to $100 million and EBITDA between $3 million and $12 million. “The middle market will continue to provide opportunities to create value with our operational approach to building better businesses,” said Scott Finegan, Managing Director. “We greatly appreciate our investors’ trust and support.”
Pfingsten began investing Fund V on January 1, 2016 and plans to assemble a portfolio of approximately 14 platform investments.
“The value we bring to middle market companies lies in our ability to take a company through the transition from its entrepreneurial roots to a professionally managed business,” said James Norton, Senior Managing Director. “We use very conservative financial leverage and strive to double or triple the size of our businesses through organic growth and add-on acquisitions.”
Kirkland & Ellis (www.kirkland.com) provided legal counsel to Pfingsten. The Kirkland team was led by private funds partners Bruce Ettelson and John Muno and associates Katie St. Peters and Sam Scarcello; corporate associate Amanda Leese; investment management partner Corey Zarse; tax partner Don Rocap; and employee benefits partner Laura Bader. Kirkland continues to be one of the most active law firms serving private equity. In the past three years alone, Kirkland has advised 275 fund sponsors, raising more than 350 funds with more than $290 billion of capital commitments.
© 2016 PEPD • Private Equity’s Leading News Magazine • 3-3-16
