Ironwood Closes Largest Fund

Ironwood Capital has closed its latest fund, Ironwood Mezzanine Fund IV LP, above its $400 million target. Limited partners in the new fund include over 40 domestic insurance companies, banks and pension funds.

Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts.

“This was the largest raise in our history and it came together through the combined efforts of our ad hoc internal fundraising team and the support of our extremely loyal core of repeat limited partners, many of whom have been with us since our first fund in 2001. Those investors enabled us to get out of the blocks quickly, build momentum and finish strong,” said Marc Reich, Chairman and Chief Executive Officer. Ironwood’s earlier fund, Ironwood Mezzanine Fund III LP, closed above target in February 2013 with $307 million of capital commitments from nearly two dozen institutional investors.

Fund IV began investing in May of 2017 and to date has invested over $135 million of its total capital. Just last month the fund closed four investments: a subordinated debt and minority equity investment in American Residuals Group, an Arkansas-based environmental services company; a subordinated debt and minority equity investment in Tallahassee-based Consulting Solutions International, a provider of IT consulting and staffing services; a subordinated debt and minority equity investment in Jamestown, NY-based Bush Industries, a manufacturer and distributor of ready-to-assemble and fully-assembled commercial and home office furniture; and a subordinated debt investment in BrandFX Body Company, a Fort Worth-based manufacturer of composite fiberglass truck bodies primarily serving the power and telephone industries.

“We believe we were able to get off to a strong start due to the extensive network of deal sources we have developed over the 17 years we have focused on the lower middle market throughout the US and across multiple industries,” said Carolyn Galiette, President and Chief Investment Officer. “Everyone at Ironwood has specific marketing responsibilities and I believe that effort is reflected in our level of investment activity.”

Ironwood Capital was originally established in 1986 by Mr. Reich as the investment banking subsidiary of Aetna Life & Casualty. Ms. Galiette joined in 1988 and the two purchased the firm in 1990, rebranding as Ironwood Capital. The firm continued its investment banking practice until the formation of its first investment fund in 2001, at which point it shifted its focus exclusively to private equity principal investing. Today, the firm has 20 employees in its Avon, CT offices and over $750 million of assets under management (www.ironwoodcap.com).

© 2018 Private Equity Professional | July 12, 2018

Print Friendly, PDF & Email

Related Articles

Easy A’s and Killer B’s Headlined by a near-record valuation mark of 7.8x Trailing Twelve Months (TTM) Adjusted EBITDA, completed deal activity in the fourth quarter of 2018 ...
TA Adds Vice President TA Associates has hired Amit Jain as a vice president. He will be part of the firm’s North America Technology Group and will be based in TA’s Menlo Pa...
CORE Closes High Demand First Fund CORE Industrial Partners has held a final close of CORE Industrial Partners Fund I LP with total commitments of $230 million. The new fund was signifi...
Falfurrias Closes New Fund Falfurrias Capital Partners has closed its new middle-market private equity fund, Falfurrias Capital Partners IV LP (FCP IV), at its hard cap of $500 ...
Edgewater Hits Fund IV Hardcap Edgewater Capital Partners has held a final closing of Edgewater Capital Partners IV LP (ECP IV) at its hardcap of $185 million. Limited partners i...
Corridor Adds Investment Pro Corridor Capital had hired Zack Stiefler as a principal on the firm’s investment team. Mr. Stiefler will be active in the evaluation, due diligence, f...