Capital Partners raises $600 mln for third fund

Norwalk, Connecticut-based Capital Partners LLC, a private equity firm, has closed its third fund at a hard cap of $600 million. Capital Private Equity Income Fund III LP will focus on acquiring small to medium-sized companies in the manufacturing, distribution and service industries. Fund III’s limited partners include insurance companies, public and private pension funds, endowments, foundations and high-net worth individuals. Lazard was placement agent while Finn Dixon & Herling LP provided legal counsel.


NORWALK, CT – Capital Partners, LLC (“Capital Partners”) has announced the successful closing of its third fund, Capital Partners Private Equity Income Fund III, LP (“Fund III”), at its hard cap with $600 million in capital commitments. Finn Dixon & Herling LLP served as legal counsel and Lazard served as placement agent in the raising of Fund III.

Fund III continues Capital Partners’ primary strategy of making control equity investments by acquiring small and mid-sized family and management-owned companies in the manufacturing, distribution and service industries. Consistent with the strategy of prior funds, Fund III focuses on opportunities where it can leverage Capital Partners’ experience in actively supporting companies in developing and executing a strategic growth plan to build longer-term value and generate a quarterly cash yield for investors. In support of its objectives, Fund III plans to finance its acquisitions with only a low-to-moderate level of outside debt, with most of the capital provided by Fund III, sellers and portfolio management teams primarily in the form of equity. Capital Partners became dedicated to this approach in 2004 and believes that the use of only a moderate level of outside debt to finance transactions should result in decreased leverage-related risks for the portfolio companies and, thereby, enable portfolio company management to execute strategic growth plans with higher probabilities of success and greater growth in operating earnings.

Fund III successfully raised capital from a cross section of limited partners, including insurance companies, public and private pension funds, endowments, foundations and high net worth individuals. Rob Tucker, a Managing Partner of the firm, said “We are very pleased with the strong support from both our existing and new investors for Fund III. We are quite fortunate to have such a distinguished group of investment partners.” Mark Allsteadt, a Managing Partner of the firm, commented “We look forward to continuing our lower-debt, cash-yielding investment strategy to deliver the strongest returns possible for our Limited Partners and portfolio company management teams.”

About Capital Partners:
Capital Partners, headquartered in Norwalk, Connecticut, is a private equity firm focused on creating value by acquiring and building manufacturing, value-added distribution, specialty consumer and business service companies predominately in the United States. Capital Partners works closely with management teams of small and mid-sized private businesses to develop strategies and provide needed resources to grow their companies. Additional information is available on the firm’s website at