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Cinnabon backer Roark’s fourth fund: Too yummy to resist?

Roark Capital is seeking $2.5 billion for its fourth fund, according to a source and an SEC filing.

The Atlanta-based PE firm has been out marketing for Roark Capital Partners IV LP this year. Roark had been expected to target at least $1.5 billion for Fund IV, peHUB previously reported.

One LP said the $2.5 billion target “seems like a big number” but that the fundraising is generating a “lot of demand.” Lazard Freres & Co. is the placement agent for the fourth fund, the filing said. Lazard was also the placement agent for Roark’s fund III.

Roark’s third fund closed on $1.5 billion in October 2012. Roark Capital Partners II L.P., meanwhile, collected $1 billion in 2008. Fund III produced a 6.16 percent net IRR and a 1x multiple, as of March 31, according to performance data from the Washington State Investment Board.

Performance numbers for Roark’s second fund were not available.

[contextly_sidebar id=”oLNjdW0AWl4bE9tlloBEEPZEMCF45CFv”]Roark invests in franchise, brand management, environmental services and marketing services companies. Investments include Arby’s, Auntie Anne’s, Cinnabon, Hardee’s and Miller’s Ale House.

Roark Fund IV received a roughly $200 million commitment from the Washington State Investment Board, peHUB sister publication Buyouts reported earlier this month. Roark will likely invest between 40 percent and 60 percent of Fund IV in the franchise industry, Buyouts said, citing a Hamilton Lane report.

The fundraising comes as Roark recently exited Fastsigns. In July, Levine Leichtman Capital Partners said it was buying the franchisor of signs and graphics. The deal represented a more than 10-year hold for Roark, which acquired Fastsigns in October 2003. Fastsigns is no longer listed as a Roark portfolio company on the firm’s website.

Executives for Roark and Lazard could not immediately be reached for comment.

Cinnamon roll photo courtesy of ShutterStock: