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ICV Partners hits market with Fund IV

  • ICV Fund IV to target $500 mln
  • Firm closed Fund III on $400 mln in 2014
  • Founded by banker Willie Woods in 1998

ICV Partners is in market with its fourth fund, targeting $500 million with a $750 million hard cap, according to two sources with knowledge of the firm.

If it hits the target or hard cap, Fund IV would be ICV’s largest to date. The firm, founded by former banker Willie Woods in 1998 as Inner City Ventures, closed its third fund on $400 million in 2014.

ICV didn’t respond to a request for comment.

“We’re generalists but focused on common functional areas, management issues — figuring out distribution channels, improving organic growth and other areas,” Woods told Buyouts in a 2014 interview.

ICV targets investments in companies that generate revenue of $25 million to $250 million and EBITDA of more than $8 million, the firm’s Form ADV shows. Sectors include manufacturing, consumer goods and services, business services, food and beverage, commercial services and healthcare.

Woods, who worked at Deutsche Bank prior to founding ICV, formed the firm to create a “world-class, ethnic minority-owned private investment company,” the Form ADV says. ICV has stayed true to that goal as it is minority-owned and the majority of employees are minorities.

Fund III was generating a 6.65 percent IRR since inception as of March 31, 2016, California State Teachers’ Retirement System performance information shows.

The New York firm closed Fund II on $313 million in 2006. Fund II was generating a 13.5 percent net internal rate of return and a 1.7x multiple as of June 30, 2016, according to California Public Employees’ Retirement System.

Investors in Fund II included New York State Common Retirement Fund, CalPERS, Citibank, Fairview Capital Partners, Bank of America and State of Connecticut, a statement at the time said.

Past investments include specialty-retail business Marshall Retail Group, which the firm sold to Brentwood Associates in 2014 after reacquiring the company in 2008. ICV also sold Marshall Retail Group in 2005.

In December, ICV invested in SG360, a printing and marketing services provider. Terms weren’t disclosed.

The firm managed $667.9 million as of Dec. 31, 2015.

Action Item: ICV’s Form ADV:

Photo of Willie Woods courtesy ICV Partners