- Fund V to more than double Fund IV’s $162.5 mln
- Montana backs Fund V for $20 mln
- Firm acquired Superior Controls with Fund IV in March
DFW Capital Partners will likely close its fifth flagship fund in the next week, according to a source familiar with the matter.
The fund is expected to raise around $360 million, the source said. At that size, DFW Capital Partners V will more than double the $162.5 million the firm raised through its previous fund in 2013.
UPDATE: DFW announced a final close on $360 million on April 4.
On February 29, Montana Board of Investments committed $20 million to Fund V, according to board meeting materials.
Individual returns for DFW’s previous funds could not immediately be determined. However, according to an August news release from data provider Preqin, three of the firm’s private-equity funds generated top-quartile returns.
DFW Capital Partners specializes in the healthcare, business-services and industrial-services sectors. Typical portfolio companies have revenue of as much as $100 million and $3 million to $10 million of Ebitda.
The firm’s previous fund could invest as much as $20 million of equity per deal. It could also invest larger amounts with institutional co-investment support, according to a December 2013 news release.
In March, DFW Capital Partners invested in Superior Controls Inc, the Seabrook, New Hampshire, provider of engineering and automation services to biotechnology and other companies. Superior Controls is the seventh platform company in the DFW Capital Partners IV portfolio.
DFW Capital Partners is led by Managing Partner Keith Pennell. The firm’s partnership group includes Douglas Gilbert, Brett Prager and Brian Tilley. Donald DeMuth, who co-founded DFW in 1983, is also a partner at the firm.
The firm has offices in Teaneck, New Jersey, and Chevy Chase, Maryland.
Action Item: To get in touch with DFW, call +1 201-836-6000
Photo courtesy Reuters/Yuriko Nakao