DFW, with roots from the ’80s, nears final close on largest fund

  • Fund VI has been in market for three months
  • Original target of $450 mln
  • Focus on healthcare, industrial and business services companies

DFW Capital Partners is nearing the final close of its sixth fund, which is expected to hit its $500 million hard cap, sources told Buyouts.

DFW Capital Fund VI was originally targeting $450 million. It has been in the fundraising market for about three months, one of the sources said.

Griffin Financial Group is placement agent. The group closed Fund V on $360 million in 2016.

Keith Pennell, DFW Capital Partners, Texas, Dallas
Keith Pennell, Managing Partner, DFW Capital Partners. Photo sourced from DFW’s website.

The firm is led by Managing Partner Keith Pennell and Partners Brett Prager, Douglas Gilbert and Brian Tilley. DFW makes growth investments in business, healthcare and industrial services companies, typically with under $15 million of Ebitda.

DFW’s roots go back to 1983. Co-Founder Don DeMuth helped launch the firm, then known as DeMuth Folger & Terhune, along with Thomas Folger, Buyouts previously reported.

DFW then became DeMuth, Folger and Wetherill. It raised $50 million for its first institutional fund in 1984, according to an archived version of its website.

The Teaneck, New Jersey, firm raised $54 million for Fund III, which closed in 2010. DFW closed Fund IV on $162.5 million in 2013.

On March 15, DFW acquired a controlling stake in Sev1Tech, which provides enterprise IT and program management support.

Action Item: Reach DFW at +1 201-836-6000