Harvest Partners to target $1.5 bln for next flagship fund

Harvest Partners is talking to limited partners about its next flagship fund, targeting $1.5 billion, according to three people with knowledge of the firm.

Harvest Partners VII is not yet officially in the fundraising market, two of the people said. It’s not clear when the fund could launch, though it’s expected to launch this year, the people said.

Caroline Luz, a spokeswoman for Harvest, declined to comment.

Update: Harvest also has been out raising its first non-control fund, Harvest Partners Structured Capital Fund, targeting $400 million. That fund collected at least $110 million as of January, according to an SEC document. The vehicle makes both structured equity and junior debt investments in companies.

Park Hill Group is helping with the Structured Capital fundraising.

Harvest’s prior flagship vehicle, Fund VI, which raised about $1.1 billion, generated a 19.26 percent internal rate of return and a 1.34x multiple as of December 31, according to alternative assets data provider Bison.

Its fifth fund, a 2007 vintage that raised more than $800 million, produced a 19.60 percent IRR and a 1.71x multiple as of December 31, according to Bison.

The firm’s Fund IV, which raised $558 million in 2002, generated a 34.60 percent IRR and a 2.23x multiple as of December 31, Bison said.

Harvest targets investments in the middle market in business and industrial services, manufacturing and distribution, healthcare, midstream energy, and consumer products and retail.

Founded in 1981, Harvest is led by a group of senior managing directors:Thomas ArenzMichael DeFlorioStephen EisensteinIra Kleinman andJay Wilkins.

Last year, Harvest sold Packers Sanitation Services Inc to Leonard Green & Partners for close to $1 billion, including debt, Reuters reported.

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