Bertram Capital has raised more than $500 million for its second growth equity fund, peHUB has learned. The San Mateo, Calif.-based firm still needs to make a few more allocation decisions, and expects to hold a final close on $520 million within the next few weeks (including up to a $20 million general partner commitment).
Bertram launched fundraising back in March with a $500 million target. It had originally planned to begin marketing in early 2009, but held off as smaller deal sizes allowed Bertram to lengthen the investment runway of its $350 million first fund.
“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.”
Bertram’s first fund is now mostly committed, and the expectation is that Fund II will add its first portfolio company within the next two months. Through the end of 2009, CalPERS reports that Bertram’s first fund had an IRR of 18.4%, albeit without any distributions.
Drazen declined to comment on the current fundraising process.