Trive Capital is moving quickly through fundraising on its sophomore investment vehicle that is targeting up to $500 million for complex situations and corporate carve-outs in the lower middle market, according to two people with knowledge of the firm.
“They’re basically oversubscribed,” said one of the people, an LP who has heard the fund pitch. Fund II is targeting $400 million with a $500 million hard cap, the LP said.
Trive is raising Fund II just two years after wrapping up its debut fund. The Dallas firm, founded by veterans of Insight Equity, worked through its $300 million Fund I rapidly, with several deals under its belt in a variety of industries. The firm has been capitalizing on a rebound in U.S. construction activity and traction in the automotive sector, among other macro trends.
Among its LPs, Teacher Retirement System of Texas invested in Trive Capital’s first fund.
Trive Capital wrapped up a dividend recapitalization of LARK Industries Inc, after lining up a new term loan for the company just 11 months into its hold period, according to an August 3 statement from the firm. Financial terms of the deal weren’t disclosed. Trive Capital said LARK Industries has de-levered significantly in the past year as it operates under the name Residential Design Services, a provider of design and installation services for flooring, countertops, wall tiles, window treatments, finished carpentry and other interior finishes.
Among Trive’s other investments is Amteck, a Lexington, Kentucky-based provider of electrical services for greenfield and facility construction projects. Terms of the deal weren’t provided.
It also invested an undisclosed sum in Austin, Texas-based Architectural Granite & Marble Ltd, an importer and distributor of stone for residential and commercial construction projects.
In June, Trive invested in Madison-Kipp Corp, a Madison, Wisconsin-based manufacturer of aluminum die cast and machine assemblies for the automotive, leisure and lawn businesses. Trive said it supported senior management in a buyout of the company. Terms of the deal weren’t disclosed.
Trive did not respond to a request for comment about Fund II.
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Chris Witkowsky contributed to this report