Centerfield Capital Partners said Monday that its third fund raised more than $171 million. Centerfield Capital Partners III exceeded its $150 million target. Centerfield provides subordinated debt and equity capital to lower middle market companies.
Indianapolis, IN, May 20, 2013 – Centerfield Capital Partners announced today the final closing of its third fund, Centerfield Capital Partners III, with aggregate commitments exceeding $171 million. The firm’s strategy of investing in privately held, high performing companies in the lower middle market attracted strong support from both existing and new investors. Commitments to the fund exceeded Centerfield’s $150 million target and represent approximately a 50% increase in the amount of capital committed to Centerfield’s second fund.
Like its predecessor funds, Centerfield III will invest a combination of subordinated debt and equity in the companies in which it invests. “Our firm provides capital to businesses generating $15 to $100 million in revenue. Our goal is to invest approximately two-thirds of our capital in high coupon subordinated debt and one third in equity,” explained Tom Hiatt, Founding Partner of the firm. “Typically, we invest between $4 and $12 million in each transaction, although we have the capacity to arrange up to $30 million in financing with participation from our institutional limited partners.”
“Regardless of fluctuations in the economic environment, we maintain a disciplined approach to investing,” said Scott Lutzke, Founding Partner. “We back companies with a history of growth and profitability which are led by strong management teams. Conservative valuations are also a critical element to our strategy. We are cautious in the amount of leverage we use to finance our portfolio companies, and believe this discipline has been instrumental to our success.”
Centerfield provides capital for change of control transactions, recapitalizations, acquisitions, and growth initiatives. “We pride ourselves on our flexibility to invest a combination of subordinated debt and equity that meets the needs of the sponsor,” explained Matt Hook, Partner. “We work closely with funded and independent financial sponsors, and with management teams, who acquire control ownership positions in companies poised for growth. We have a broad range of industry interests, and a particular interest in firms engaged in manufacturing and business services.”
Faraz Abbasi, Partner, added, “Centerfield provides a logical alternative to a business owner or management team who may not want to sell a controlling interest in their company. Often, a business owner or management team may wish to raise capital for an acquisition, to take out a retiring partner, or to diversify wealth while maintaining operating control of a company and participating in another stage of growth. Centerfield prefers to invest in situations where most of the individuals responsible for a company’s past successes will continue to stay involved to take the company to the next level.”
Centerfield Capital Partners III has already made eight investments from the new fund.
Conshohocken, PA Supplier of outdoor furniture and accessories for the beach, backyard, patio, and other outdoor venues
Venture Technology Groups
Farmington Hills, MI Distributor of industrial components to the process manufacturing and energy industries
Matilda Jane Clothing
Fort Wayne, IN Designer and marketer of uniquely styled children’s clothing and products
Direct Marketing Solutions
Portland, OR Develops and executes direct marketing programs on behalf of Fortune 1000 companies
New York, NY Provider of video post-production services, including video content processing and distribution
Banner Service Corporation
Carol Stream, IL Precision processor and distributor of metal bars to the general industrial and medical markets
Auburn, WA Manufacturer and assembler of complex precision parts for use on commercial and military airframes
Howell, MI Leading provider of battery recycling services and products
Investors in Centerfield III include pension funds, fund-of-funds, global and regional banks, insurance companies, foundations and high net worth individuals.
For additional information, please contact Tom Hiatt or Scott Lutzke at (317) 237-2323.
Centerfield Capital Partners is a leading provider of subordinated debt and equity capital to lower middle market companies. We work closely with financial sponsors, management teams and business owners who seek mezzanine and equity financing to grow companies. Founded in 1998, Centerfield has invested in 40 companies and currently manages in excess of $300 million.