Blue Wolf Capital, a New York-based firm focused on control transactions in the lower middle-markets, has held a $100 million first close on its second fund, peHUB has learned. It is targeting a total of $250 million, with a $300 million cap and a 2% management fee.
Blue Wolf was originally launched as Partnership Equity in mid-2005, and raised around $40 million for its first fund the following year. That entire commitment came from South Africa-based Johnnic Holdings, and was used to finance acquisitions like Finch Paper Holdings, Northern Pulp Nova Scotia Corp. and Montauk Energy Capital (winner of Buyouts’ Small-Market Deal of the Year Award BuyoutsDoY.pdf).
It is obviously raising much more capital this time around, but does not plan to alter its investment strategy. According to its website, that means basements of $25 million for company revenue, $20 million for total transaction size and $10 million for firm investment size.
One way it will accommodate the extra capital is by using extra bodies. Blue Wolf was originally launched Adam Blumenthal and Josh Wolf-Powers, who both held positions with the New York City Comptroller’s Office. They are still listed as managing partners, but are complemented by a staff of nine investors, operating partners and advisers. They also have a four-person strategic advisory board.
Blue Wolf declined comment for this story, citing regulatory restrictions.