Renovo Capital has closed its third fund, Renovo Capital Fund III LP, at the hard-cap of $225 million. The firm’s earlier fund closed in September 2014 with $132 million of capital commitments.
Fundraising for Fund III began in September 2018 and it received support from both existing and new investors including pension programs, insurance companies, institutional asset managers, foundations, endowments and large family offices.
“Our focus in Fund III will be a continuation of the firm’s founding strategy, seeking complex situations in the lower middle market where we see multiple levers of value creation, to build businesses with long term strategic value,” said Don Jungerman, a managing partner at Renovo. Since its founding in 2009, Renovo has completed over 20 middle market transactions and expanded from its three founding members to 15 operating and investing professionals.
Renovo Capital makes control equity investments in lower middle market businesses that are undergoing varying degrees of operational, financial or market-driven change. The firm typically invests from $10 million to $50 million of equity capital in businesses with annual revenues between $20 million and $200 million and EBITDA from $0 million to $20 million. Sectors of interest include specialty manufacturing and business services.
“Fund III will continue the investment strategy of making control equity investments in lower middle market specialty manufacturing and business services companies,” said David Hull, a managing partner at Renovo.
Hunton Andrews Kurth (www.huntonak.com) provided legal services for this fundraise.
Renovo Capital is headquartered in Dallas (www.renovocapital.com).
© 2019 Private Equity Professional | January 30, 2019