Bertram Capital last month began raising its second fund with a $500 million target, peHUB has learned.
The Silicon Valley-based growth equity firm originally planned to begin marketing in early 2009, but deferred due to smaller deal sizes.
“Everything we’re buying right now is substantially under 5x EBITDA, but we originally forecasted paying 8x EBITDA or more,” Bertram managing director Jeff Drazen explained at the time. “[Canadian publisher] Trafford is a good example. It’s a $10 million business we’re buying for a couple hundred thousand… I just don’t feel we can go out until Fund I is 75% committed, and we’re just not there yet.”
But Bertram is there now, with the firm’s $350 million first fund more than 80% committed. That vehicle is split just about evenly between acquistions and platform investments, whereas the new (larger) fund will put just over two-thirds of its money into acquisitions.
Through the end of Q3 2009, CalPERS reports that Bertram’s first fund had an IRR of 23.6%, albeit without any distributions.
Drazen declined to discuss how the new fundraise was progressing.