Midwest-focused Mason Wells targets $550 mln for fourth fund

Mason Wells is targeting $550 million for its fourth flagship fund for middle-market investments, according to a limited partner who has heard the pitch.

The firm expects to hold a first close on Fund IV in the next few weeks, the LP said. Gregory Myers, senior managing director at Mason Wells, did not return a call for comment.

Mason Wells closed its third fund on $525 million in 2010 from 91 investors, including institutions and individuals, the firm said at the time. Fund III generated a 7 percent net internal rate of return and a 1.21x multiple as of June 30, 2015, according to performance information from alternative assets data provider Bison.

Fund III charged a 2 percent management fee, according to Mason Wells’ Form ADV. It’s not clear if that will be the same in Fund IV.

The firm, which became independent in 1998, targets investments in packaging and materials, consumer packaged goods, outsourced business services and engineered products and services, according to its website. Based in Milwaukee, Mason Wells has traditionally focused on the Midwest, which it “believes is underserved by the private equity industry,” according to the Form ADV.

Senior executives at Mason Wells are: John Byrnes, principal owner, executive chairman and president; Tom Smith, executive managing director; and Greg Myers and Kevin Kenealey, both senior managing directors. Byrnes stepped back from daily management of Mason Wells in 2013 to focus on long-term strategy and personnel development, part of an overall succession plan, the firm said at the time.

Earlier this year, Mason Wells sold Charter NEX Films Inc, which makes polyethylene films, to Pamplona Capital Management for an undisclosed amount. In January, the firm sold Paris Presents, which provides beauty products and personal care accessories, to Wasserstein & Co, with the Ontario Pension Board and Northwest Mutual co-investing. No financial terms were disclosed.

Action Item: Check out Mason Wells’ Form ADV here: http://1.usa.gov/1Qv33Lj

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