WestView Capital Oversubscribed on $430M Fund III

WestView Capital Partners has wrapped up a targeted $430 million fundraise for WestView Capital Partners III LP, its flagship lower mid-market fund, in a fresh example of a growth equity vehicle drawing strong interest.

Citing wide participation by limited partners, a person familiar with the firm told sister publication Buyouts that WestView Capital’s fundraising effort has been “way oversubscribed.” Another person familiar with the firm said the fund hit its hard cap of $430 million “a while ago” and turned away some prospective investors.

A third source said the firm has managed to raise fresh capital quickly just four years after WestView Capital II drew in $325 million, beating its $300 million target. LPs in that vintage 2009 fund include The Massachusetts Pension Reserves Investment Management Board and fund-of-funds manager Twin Bridge Capital Partners.

Officials at Boston-based WestView Capital, co-founded in 2004 by Carlo A. von Schroeter after he worked at Weston Presidio as a general partner, did not return emails or phone calls seeking comment.

The firm filed a Form D for WestView Capital Partners III on May 1 with a fundraising objective of $430 million and no money yet recorded as being raised.

Among the firm’s recent flurry of deals, it completed a growth investment in DavexLabs LLC, a hair care products company for professional salons under its L’Anza brand, in July. In May, it exited its investment in RuffaloCODY, a fundraising services firm for nonprofit organizations, in a deal with Summit Partners, according to its website.

In 2012, WestView Capital led the recapitalization of Park Place Technologies, a provider of third-party hardware maintenance services for information technology firms. It exited video conferencing firm Providea Conferencing in a deal with Strategic Products and Services. It also sold its mobile device software portfolio company, Wavelink Corp, to LANDesk Software, for an undisclosed sum.

In a summary of its 2011 activities published on its website, WestView Capital said it made three new portfolio investments totaling $74 million in Resource Interactive, LDiscovery, and eSolutions, while exiting Body Central and OneNeck IT Services from Fund I. It also made a Fund II distribution through a dividend recap of Peerless Industrial Group and completed five portfolio company add-on acquisitions.

WestView Capital seeks minority and majority recapitalizations, acquisition financings, growth financings and consolidations of $10 million to $30 million per investment. Larger investments are made through co-investments with its LPs and other co-investments.

The firm seeks out consistency in growth and financial performance, as well as operating profits between $3 million and $20 million in eight industries, including business services, information technology, manufacturing and media.

Photo courtesy of Shutterstock.

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