Marlin Equity Raises $650 Million

Marlin Equity Partners has closed its third mid-market fund with $650 million in capital commitments, according to a regulatory filing. It originally began marketing the vehicle with a $450 million target, but Erin recently reported that it would soon announce a final close on substantially more.

Probitas Partners served as placement agent. www.marlinequity.com

UPDATE: Marlin has issued a press release. Read it below:

Marlin Management Company, LLC (“Marlin”) is pleased to announce the first and final closing of Marlin Equity III, L.P. (“Fund III”), a $650 million institutional private equity fund established to seek capital appreciation through investments in businesses undergoing varying degrees of operational, financial or market driven change. Marlin targets companies across a variety of industries, including technology, healthcare, business services, consumer products, and manufacturing, among others.

Marlin has closed three private equity funds since its inception in 2005 and has over $1 billion of capital under management. Fund III’s limited partners comprise a mix of existing and new investors from leading endowments and foundations, public and private sector pension funds, family offices, financial institutions, and insurance companies. Fund III was three times oversubscribed from its original $450 million target and completed a first and final closing shortly after Marlin launched its limited marketing process in September 2009.

David McGovern, Managing Partner of Marlin said, “We are extremely grateful for the strong support we received from such a prominent group of returning and new institutional limited partners. Our successful fundraise is a testament to our track record of creating value for our investors through complex transactions and operational improvements. Our increased capital base will enable us to fully take advantage of the vast number of attractive opportunities we see in the market today.”

In addition to Mr. McGovern, the Fund’s senior investment team includes Nicholas Kaiser, George Kase, Steve Johnson, Andy Martinez, and Peter Spasov. Marlin has also assembled a team of seasoned operating professionals, with established track records of value creation, who work exclusively with Marlin’s investment professionals throughout the investment process. The combined team enables Marlin to execute on complex and challenging situations where speed and certainty are a priority, including corporate divestitures, bankruptcies, operational and financial restructurings, recapitalizations, and MBOs, among others.

Mac Hofeditz of Probitas Partners, which served as incumbent placement advisor to Marlin, added, “The unbelievably strong demand that Marlin received in this market environment speaks to the quality of its investment team, its differentiated strategy, and its strong returns. Marlin has firmly established itself as a leader in special situations investing.”

Bruce Ettelson and Karin Orsic of Kirkland & Ellis LLP served as legal counsel in the formation of the Fund.

About Marlin Equity Partners
Marlin Equity Partners is a Los Angeles, California-based private investment firm with over $1 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs in special situations. Marlin invests in businesses across multiple industries that are in the process of undergoing varying degrees of operational, financial or market-driven change where its capital base, industry relationships and extensive network of operational resources significantly strengthens a company’s outlook and enhances value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 30 acquisitions. For more information, please visit www.marlinequity.com.

About Probitas Partners
Probitas Partners, founded in 2001, is an employee-owned, independent provider of alternative investment solutions, headquartered in San Francisco with offices in New York, London, and Hong Kong. Its integrated global practice includes capital raising for alternative investment funds, secondary market advisory and portfolio management. Probitas Partners is represented in the United Kingdom by PFG-UK Ltd., which is regulated by the Financial Securities Authority (“FSA”). For more information please visit www.probitaspartners.com or call Mac Hofeditz at (415) 402-0700.