According to SEC filings, the Philadelphia-based firm is seeking $1 billion for its fourth private equity fund. LLR has two pools out marketing for the $1 billion. LLR Equity Partners IV LP has collected about $509 million from 87 investors, a regulatory filing dated Sept. 7 says. Another pool, LLR Equity Partners Parallel IV LP, has come in with roughly $29.3 million from 60 investors.
The $1 billion “total offering amount” is being jointly offered by both funds, the filings say.
The $1 billion appears to be a hard cap for Fund IV. The Pennsylvania Public School Employees’ Retirement System says LLR’s fourth pool has an $800 million target and a $1 billion hard cap, according to documents dated June 21. PSERS is investing no more than $200 million in LLR’s fourth fund, the documents say.
PSERS is a longtime investor in LLR. The pension fund invested $62.5 million to LLR’s first fund, $75 million to LLR’s second fund and $187.5 million to the third fund.
LLR’s third pool also collected $800 million in 2008. PSERS, in the June 21 documents, says Fund III has produced a 14.1% net IRR (Previously, PSERS had the fund generating a -1.73 IRR, according to Sept. 30 data). Colorado PERA, as of Dec. 31, says LLR’s third pool has produced a 17.8% IRR since inception.
peHUB reported on June 19 that LLR would likely begin fundraising later this year. LLR was considering coming to market last December and was targeting $1 billion, peHUB reported at the time. One week later, Bloomberg News reported that LLR’s fund IV would seek $800 million and charge a 1.75% management fee on commitments that are the lesser of at least $200 million or 25% of the fund. Investors that commit less than this will pay a 2% fee during the investment period, the story says.
LLR has been active lately. Earlier this month, the PE firm made a growth capital investment in Orbis Education, a 9-year-old Indianapolis-based developer of nursing-education software. LLR, in July, also invested in Physicians Immediate Care.
LLR Partners typically invests from $10 million to $100 million equity per deal. Sectors include business services, consumer services and healthcare services. The PE firm takes minority or majority positions.
Officials for LLR could not immediately be reached for comment.
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