Valor Equity Partners targets $750 mln for Fund IV

Valor Equity Partners is marketing its latest growth equity fund with a $750 million target, two limited partners told Buyouts. The firm has not set a hard cap, but Valor Equity Partners IV is unlikely to surpass $1 billion.

New York State Teachers’ Retirement System and Illinois Municipal Retirement Fund both committed up to $75 million to the fund earlier this year. Both retirement systems declined comment on the fund’s target or strategy.

The firm did not respond to requests for comment.

Valor closed its third flagship fund on $490 million in 2015. Fund III LPs included California Public Employees’ Retirement System.

Valor invested in several of Elon Musk’s businesses, including Tesla, space exploration technology company SpaceX and SolarCity, a solar power business. Other portfolio companies include Manduka, which makes yoga equipment, food businesses Eatsa and Fooda and healthcare companies Marathon Pharmaceuticals and Family Home Health Services.

Valor’s second fund was netting a 22.4 percent internal rate of return and 2.6x multiple through June 30, according to CalPERS records. Fund III was netting an 8.5 percent IRR and 1.2x mutiple as of that date.

Antonio Gracias founded Valor Equity Partners in 1995. Susan Hassan, Juan Sabater, Jonathan Shulkin, Michael Soenen and Timothy Watkins are partners at the Chicago firm.

Action Item: For more information about Valor Equity Partners, visit www.valorep.com

Tesla CEO Elon Musk celebrates at his company’s factory in Fremont, California, on June 22, 2012, as the car company began delivering its Model S electric sedan.  Photo courtesy Reuters/Noah Berger

Correction: The story previously indicated Elon Musk had backed Fund III, reflecting information published in a story in 2014. The headline and fourth paragraph have been edited to remove those references.