Insight Equity Seeks $750 Million for Fund III

Insight Equity has officially begun marketing for its latest fund, sources say.

The Southlake, Texas-based private equity firm is looking to collect $750 million for its third equity pool, a person says. Insight Equity III LP hopes to hit a first close by the summer, one source says.

The PE firm plans to release its PPM later this month, the source says. Insight Equity is not using a placement agent for fund III.

Insight Equity collected $525 million in 2010. This included $435 million for Insight Equity II LP and $90 million for Insight Equity Mezzanine I LP. (The firm had sought $500 million for its second equity fund and $250 million for a mezz pool, according to SEC filings.) Insight Equity’s first fund closed at $280 million in 2006.

IRRs for the funds could not be located. However, all of Insight Equity’s investments to date have returned 91% of invested capital, the person says.

Insight Equity targets middle market companies in manufacturing and distribution, as well as energy services. The firm typically invests from $25 million to $75 million equity per deal. The PE firm did a number of acquisitions in 2012 including buys of Micross Components, New Star Metals and Flanders Corp.

Officials for Insight Equity declined comment.

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