Crestview may target $3.5 bln for Fund IV: updated

  • Crestview talking to LPs about Fund IV
  • Could target $3.5 bln
  • Fund III closed on more than $3 bln in 2015

Crestview Partners is talking to limited partners about its next flagship fund, which could target $3.5 billion but could seek more than that, sources told Buyouts.

No target or cap has officially been set and the numbers could change, sources said. One LP said the fund could raise closer to $4 billion. It’s not clear when Crestview will officially launch Fund IV.

The talks with LPs are going well, said a source with knowledge of the New York-based firm.

Crestview closed its prior fund on more than $3 billion in 2015, which included a $250 million GP commitment, according to a statement at the time.

Still in its J-curve, Fund III generated a 1.1x multiple as of Sept. 30, 2017, according to a market source.

Crestview Partners II, which closed on $2.4 billion in 2009, produced a 15.5 percent net internal rate of return and a 2x multiple as of March 31, 2017, according to the California Public Employees’ Retirement System, an LP in the fund.

Performance data was unavailable for Crestview’s debut fund, which closed on $1.5 billion in 2005.

Crestview was founded in 2004 by Goldman Sachs alums Barry Volpert and Tom Murphy. Both are partners, with Volpert serving as CEO of the firm. Other senior executives at Crestview include Vice Chairmen Robert Hurst and Jeffrey Marcus and Partners Alex BinderowBrian Cassidy, Robert Delaney, Dan KilpatrickAdam Klein, Richard DeMartini, Evelyn Pellicone (also CFO), and Alexander Rose.

One member of the partner group, Quentin Chu, left the firm last year, according to his LinkedIn profile. Chu is now chief financial officer at CityMD, his profile said.

Crestview focuses on middle-market investments in media, financial services, energy and industrial sectors, targeting investments of $100 million to $400 million equity in companies with enterprise values of up to $2 billion, according to Crestview’s Form ADV.

Crestview currently has 20 companies in its portfolio and has realized 15 investments, according to its website. Among its recent investments, Crestview in December teamed with Apollo Global Management and Reverence Capital Partners to buy Voya Insurance and Annuity Co from Voya Financial Inc., with each investing $80 million in the deal.

Update: This article was updated with additional fundraising and performance information.

Action Item: Check out Crestview’s Form ADV here.

Photo of Barry Volpert sourced from Crestview’s website