Industrial Opportunity Partners (IOP) has closed its third fund, Industrial Opportunity Partners III, LP, with $450 million of committed capital.
The new fund held a single close on June 30, 2017, and hit its hard cap after a three-month fundraising process. The original target for the fund was $400 million. Limited partners in Fund III include university endowments, foundations, insurance companies, pension plans, and funds-of-funds.
“We are pleased to have completed raising Fund III so quickly and with such strong demand,” said Kenneth Tallering, Senior Managing Director of IOP. “We appreciate the support and confidence of our investors, and we look forward to the opportunity to create value in our Fund III portfolio companies.”
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP was founded in 2005 and is headquartered in the Chicago suburb of Evanston (www.iopfund.com).
According to IOP, the firm differentiates itself from other investors by its operating resources led by its dedicated, full-time Board of Operating Principals – a group of executives, each with over 25 years of experience, who guide and assist management teams in stabilizing, enhancing, and growing the value of their businesses. “We believe the talents of our team continue to resonate with our investors and enable IOP to pursue and create value in a broad spectrum of investment situations,” said IOP Senior Managing Director Robert Vedra. “Further, we believe that IOP’s Board of Operating Principals has been a key factor in creating value in our portfolio companies and providing consistency in our returns to investors.”
IOP’s first fund totaled $185 million of committed capital and was raised in 2006 and 2007. Fund I has completed 11 platform investments, seven add-on acquisitions, and seven realizations. IOP’s second fund totaled $275 million of committed capital and was raised in 2012. Fund II has completed 11 platform investments, two add-on acquisitions and two realizations. The portfolio companies of both these earlier funds serve a variety of end markets, including transportation, construction, agriculture, building products, packaging, and general industrial. No portfolio companies have been acquired yet for Fund III.
Park Hill Group was the placement agent on this fund raise.
© 2017 Private Equity Professional | July 11, 2017