Too bad they couldn’t name themselves something beginning with an “F.” Illinois and Vancouver-based private equity fund Tricor Pacific Partners will soon submit paperwork with regulators and begin fundraising for a fifth fund, peHUB has learned from multiple sources.
The private equity firm’s fourth fund, a 2006 vintage $555 million vehicle, has begun seeing exits and still has remaining capital to invest. Because the PE firm never invests in a company through multiple vintages, one source said, its fundraising was planned to carry through this year and end in 2012.
Existing LPs, including pensions, are expected to re-up for the next fund as the trajectory for the 2006 vintage will make the fund profitable. Tricor has not yet hired a placement agent for its fund, one source acknowledged.
Indeed things are looking up for Tricor’s fourth fund. According to CalPERS data (the pension contributed about 20% of the fund’s capital overall), early figures have Tricor Pacific IV posting an IRR of 1.9% and an even round multiple of 1.00x. Of course, it’s too early to rush to judgment.
Assets still under management (several of them continue to be developed by Tricor) include payments processor CPI Card Group; Canadian tanker manufacturer Advance Engineered Products; Expocrete, a Canadian concrete company; Canadian private label food manufacturer Golden Boy; Keyes Packaging Group, a maker of packaging products based in the state of Washington and in Canada, and Beresford Box Co., another packaging and printing firm.
Tricor has been active lately; it dealt one of its portfolio assets, Consolidated Utility Services, to OMERS Private Equity, netting an IRR of 28% for the PE firm and a cash-on-cash return of 2.5x for investors. These figures were not included in the CalPERS data. It also bought, earlier this month, BFG Supply Co., a provider of lawn and garden supplies, to build out its Wetsel Inc., a Virginia-based company that also works in the space.
Tricor’s fifth fund comes as private equity firms in the Chicago area have enjoyed some increased optimism. Earlier this year, GTCR wrapped up a $3.25 billion fund, and, after that, prominent pension Illinois Teachers’ revealed plans to expand its private equity investing mandate.