DFW Capital Partners has raised $500 million for its oversubscribed sixth fund. Capital Partners VI LP will invest in lower-middle market service companies. In April 2016, the Teaneck, New Jersey-based private equity firm closed its fifth fund at $360 million.
DFW Capital Partners announced today that it has held a first and final closing of DFW Capital Partners VI, L.P., an investment partnership dedicated to making control investments in lowermiddle market service companies. Capitalized with $500 million in commitments, Fund VI was oversubscribed, and saw an increase in participation from DFW’s existing limited partners, as well as the addition of several new institutional investor relationships. The firm’s investment professionals and Operating Partners also made a significant commitment to the new fund. Fund VI is the successor to DFW Capital Partners V, L.P., which held its first and final closing in April 2016 with $360 million of commitments. With the closing of Fund VI, DFW now manages in excess of $1 billion in assets dedicated to opportunities in the lower-middle market.
Keith W. Pennell, Managing Partner of DFW, commented: “We are once again thrilled with the continued support of our long-standing limited partner base, as well as the interest and commitment of new insurance company, endowment, family office and other institutional investors. We were fortunate to launch and complete the fundraising process in a little over three months, which allows us to focus on the important work of seeking new platform investments and supporting our growing portfolio of unique service businesses. As in prior funds, DFW will maintain its proven strategy of investing in high growth lower-middle market businesses and working closely with management to build industry leaders.”
DFW is actively seeking new platform investments in growing service companies, including healthcare services, general business and industrial outsourcing services and opportunities specific to the specialty pharmaceutical sector. DFW typically invests $20 million to $75 million of its own capital in each opportunity, but can lead significantly larger deals with the support of its institutional co-investors.
About DFW Capital Partners
DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare and outsourced business and industrial support services. DFW has established a long track record of success in both building leading companies, and recognizing outstanding returns for its investors.
DFW is based in Teaneck, NJ, and maintains an office in Chevy Chase, MD. For more information contact Keith Pennell, Managing Partner, at (201) 836-6000.