Pfingsten Partners has held an above target, oversubscribed, and hard cap close of its sixth investment fund, Pfingsten Fund VI LP, with $435 million in capital.
Fund VI’s limited partners include family offices, endowments, foundations, consultants, asset managers, insurance companies and high-net-worth individuals, including 25 former portfolio company executives and family-founder partners.
“The successful fundraise reflects our consistent, disciplined, operationally focused approach to building value in lower middle market companies,” said Scott Finegan, a senior managing director at Pfingsten. “For nearly 35 years Pfingsten has been laser focused on our goal of delivering exceptional results for our investment partners and other stakeholders.”
Chicago-based Pfingsten invests in middle-market manufacturing, distribution, and business services companies that have transaction values ranging from $15 million to $100 million, revenues from $20 million to $150 million, and EBITDA between $3 million and $12 million.
Pfingsten is targeting a portfolio of 12 platform investments for Fund VI and has already closed 2 platform investments with the buys of Pacific Lasertec, a California-headquartered manufacturer of specialty lasers and power supplies used in medical diagnostics, semiconductor, scientific research and development, advanced manufacturing and life sciences applications (August 2023); and Tempest Telecom Solutions, a California-headquartered provider of network telecommunications equipment and repair services to wireless and telecommunication carriers, wireless broadband provides, OEMs, and system integrators (December 2022).
Since completing its first investment in 1991, Pfingsten has now acquired 164 companies through 6 funds with total commitments of $1.8 billion.
“The value we bring lies in our ability to provide resources to scale businesses beyond their entrepreneurial roots, enabling them to realize growth potential and become high-performing organizations,” said Ken Hessevick, a managing director at Pfingsten. “The successful growth of our portfolio companies is only possible by building partnerships with highly effective management teams capable of driving growth organically and through strategic acquisitions.”
“We appreciate the strong support from both existing and new limited partners who believe in our investment philosophy, strategy and team,” said Phil Bronsteatter, a managing director at Pfingsten. “Pfingsten will continue to invest in companies where our operational resources and financial expertise drive value by building better businesses.”
Shannon Advisors was Pfingsten’s placement agent on this fundraise and Kirkland & Ellis provided legal services.
© 2023 Private Equity Professional | October 24, 2023