Crestview seeks $3 bln for third fund

The New York-based private equity firm is seeking $3 billion for Crestview Partners III LP, the source and filing indicate.

At $3 billion, Fund III will be Crestview’s biggest pool yet. The firm’s second fund collected $2.4 billion in 2007, while Crestview’s first fund came in at about $1.5 billion in 2004. Fund II was generating a 15.2 percent net IRR as of March 31, according to the California Public Employees’ Retirement System.

Term Sheet reported Crestview’s fundraising earlier this week.

Former executives from Goldman Sachs and Morgan Stanley founded Crestview in 2004. The New York-based PE firm targets the middle market and invests in financial services, media, healthcare and energy sectors.

News of the fundraising comes as Crestview failed in its effort to sell asset manager Munder Capital Management. Crestview put the Birmingham, Mich.-based company up for sale earlier this year, but received low bids and opted to pull the auction, peHUB reported on Nov. 7.

The firm has recently been active. Crestview, along with CITIC Capital, acquired Stackpole International, a supplier to auto OEMs, for a reported $512 million in October. Earlier this year, the PE firm acquired Victory Capital Management, an asset management firm, for $246 million. Crestview also closed its buy of DS Water of America, a diversified beverage company, in September.

Officials for Crestview declined comment.

Luisa Beltran is a senior reporter for peHUB