Nashville-based TVV is seeking $100 million for fund III, persons say. The hard cap for TVV Capital Partners III LP is $150 million, a person says.
It’s unclear how much TVV has collected for the fund so far. The PE firm had amassed about $22 million as of December, a regulatory filing says.
TVV’s fundraising comes as the market is crowded with PE firms trying to collect capital. Triago, the global placement agent, estimates that a record 2,000 PE funds are out looking to raise $810 billion. Insight Equity is out marketing for its latest pool, which has a $750 million target, peHUB reported this week. Alterna Capital Partners, founded by the former core capital assets team at Citi in 2007, is seeking $600 million for its second fund, Private Equity International says. Marlin Equity Partners is also looking to collect $1.6 billion for its fourth fund, Term Sheet reports.
GPs are also taking longer, about 18 months, to raise capital. TVV began marketing for fund III in the summer of 2011 and expects to complete the process later this year, a source says.
For TVV, fund III will be its first major institutional fund, the person says. Roughly 75% of the pool will come from institutions, while 25% will likely be high net worth investors, the source says. CV Brokerage is the placement agent, the SEC filing says.
TVV’s second fund collected $25 million in 2004.
Founded in 1997, TVV targets lower middle market companies in niche manufacturing. The PE firm typically invests
from $10 million to $100 million equity per deal in companies with an enterprise value of $10 million to $100 million. TVV acquired Bigham Brothers, which makes agricultural tillage and cultivating equipment, at the end of 2012. TVV also bought Big 3 Precision Products, which makes injection blow molds, tooling and fabrication products, in September.
TVV declined comment.
(Correction: A prior version of this story incorrectly stated that TVV typically invest $10 million to $100 million equity per deal. The story has been changed to reflect that TVV invests in companies with an enterprise value of $10 million to $100 million.)
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