Based in Beachwood, Ohio, near Cleveland, MCM began marketing for Fund III at the beginning of this year, one person said. MCM Capital Partners III LP has a $125 million hard cap, one of the sources said.
MCM is not using a placement agent.
Fund III is double the size of the firm’s last pool. MCM Capital Partners II LP closed at roughly $50 million in 2005. Fund I also collected $50 million, the source said.
Fund II is generating a net IRR of 18 percent and a gross IRR of 25 percent, the source said. MCM’s second fund still has two companies left in its portfolio, the sources said.
Founded in 1992, MCM targets the lower middle market or those companies needing growth capital, according to the firm’s website. MCM invests in small companies with EBITDA of $2 million to $8 million. Sectors include niche manufacturers, distribution companies and specialty B2B service companies. In May, MCM said it sold STACI Corp, which provides electronic manufacturing services and custom engineered products, to Centre Lane Partners.
Executives at MCM could not be reached for comment.
Luisa Beltran is a senior writer for peHUB.