Plexus Hits Target with Fund IV
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Plexus Hits Target with Fund IV

plexus-nf5Plexus Capital has held a final closing of Plexus Fund IV at the targeted amount of $400 million. The firm began fundraising in June and had a first close in August.

Fund IV has about 150 limited partners, 89 of which were also investors in earlier funds. Banks and institutions make up about 65% of the new fund’s limited partners with the balance composed of high net worth individuals and family offices.

michael-painter-nf1“The strong support from our existing and new investors is a reflection of the quality of our team, our differentiated strategy and consistent track record through volatile economic cycles,” said Plexus Managing Partner Michael Painter. “We look forward to leveraging our now more than two decades of experience as a team to continue supporting the growth of lower-middle market companies across the United States.”

Plexus invests from $1 million to $20 million of subordinated debt and equity in companies that have revenues of at least $15 million and cash flows of at least $2 million. Sectors of interest include business services; consumer services; healthcare; manufacturing; value-add distribution and other general industry.

mike-becker-nf1Deal flow for Plexus has been very strong this year and annually the firm reviews about 1400 opportunities and closes about 10. The firm has eight term sheets in the market and two transactions signed up and proceeding to close.  Partner Mike Becker leads the five-member business origination team.

Since its founding in 2005, Plexus has invested $562 million in 77 companies across its four funds.  Plexus Fund I, an $80 million 2005 vintage fund, has a realized a 10.5% net annualized returns to investors.  Plexus Fund II, a $175 million 2009 vintage fund, has returned 19.6% net annualized returns to investors to-date.  Plexus Fund III, a $300 million 2013 vintage fund, is now 96% deployed in 28 companies.

Plexus has a team of 19 professionals – two more will be joining the team by year end – and has offices in Charlotte and Raleigh, NC (www.plexuscap.com).

Curt Brewer, a Partner at Raleigh-based Smith Anderson provided legal services (www.smithlaw.com).

Plexus did not use a placement agent to raise Fund IV.

© 2016 Private Equity Professional • 11-9-16

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