Vance Street Capital has held a final closing of Vance Street Capital III LP with $432.5 million in commitments, exceeding its target of $375 million.
Fund III closed on December 31, 2021 and follows the firm’s earlier fund which closed in 2017 with $250 million in capital. Since its founding in 2007, Vance Street has now raised $1 billion of committed capital.
Los Angeles-based Vance Street makes control investments in North American-based companies with enterprise values of $30 million to $350 million and EBITDA of $3 million to $30 million. Sectors of interest include medical technology, life sciences, industrial technology, and aerospace & defense. More than 90% of Vance Street’s acquisitions are founder-owned businesses or corporate carve-outs.
“We are thrilled to close Fund III significantly above our target. We want to thank our existing Fund II institutional investors, all of whom reinvested in Fund III, and welcome more than 30 new limited partners including insurance companies, asset management firms, fund of funds, endowments, foundations, universities, family offices, and consultants whose clients who are joining us for the first time in Fund III,” said Brian Martin, a managing partner at Vance Street.
Fund III has already completed six transactions with investments in Wytech Industries, a New Jersey-based maker of medical wire and tubing (Vance Street first invested in Wytech through its second fund in November 2020); Excel Scientific, a California-based maker of films and foils used in life sciences applications (Vance Street first invested in Excel through its second fund in December 2020); Plastic Design Corporation, an Arizona-based contract manufacturer of micro molded medical parts (December 2021); Spectra Aerospace & Defense, a Georgia-based manufacturer of avionics and electronics used in aerospace and defense applications (February 2021); McFarlane Aviation Products, a Kansas-based manufacturer of aftermarket parts for single-engine and turboprop aircraft (October 2021); and Polara Enterprises, a Texas-based manufacturer of pedestrian traffic management and safety systems (December 2021).
In total, Vance Street’s active portfolio now consists of 14 companies across all three of its investment funds.
“We are committed to partnering with families, founders and management teams who have built market-leading and established companies to support their continued growth through investments in people, processes and technology,” said Mike Janish, a managing partner at Vance Street. “We have an experienced and specialized network of operators and executives to support our partner businesses, and we look forward to continuing to execute on our value creation playbook in the years to come.”
Like its earlier funds, Capstone Partners was used as Vance Street’s placement agent, and Proskauer Rose provided legal services.
© 2022 Private Equity Professional | February 3, 2022
