Corinthian Preps Fund II, Needs Placement Agent

Mid-market buyout shop Corinthian Capital Group LLC is prepping its sophomore fund, Buyouts reported earlier today.

Firm executives expect to start the process early next year and are talking with placement agents to help it raise the capital, a source told Buyouts. The firm will likely seek somewhere between $400 million and $500 million, though the target is not finalized.

Corinthian Capital targets North American companies in the manufacturing, distribution, service and consumer products sectors that generate annual EBITDA of $5 million to $30 million and sales of $50 million to $250 million. Its portfolio includes Alumacraft Boat Co., a St. Peter, Minn.-based manufacturer of aluminum fishing boats; Beta International, a Houston-based supplier of valve components to the energy and infrastructure markets; and Valley Tool & Manufacturing, an Orange, Conn.-based manufacturer of products for the aerospace and defense industry.

The New York-based firm, which also has offices in Chicago and Hingham, Mass., raised $314 million for its first fund, which closed in 2007. The firm recently sold Sabre Industries, a maker of wireless cell towers, to Kohlberg & Co., for its first full exit, and it has two partial exits via dividend recapitalizations, the source said.

A group of former Lincolnshire Management executives formed Corinthian Capital in 2005. The firm is led by Chairman and CEO Steven Kumble, a former corporate lawyer who also helped establish Lincolnshire Management in 1986, and three senior managing directors, who were previously managing directors with Lincolnshire: Kenneth ClayJames McNair and Peter Van Raalte.

Bernard Vaughan is a senior editor at Buyouts Magazine. Follow his tweets @BVaughanReuters. Follow Buyouts tweets @Buyouts.

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