Pfingsten closed its fifth investment fund at $382 million, exceeding its $350 million fundraising target. The firm will continue to invest in middle market manufacturing, distribution and business services companies with transaction values ranging from $15 million to $100 million and EBITDA between $3 million and $12 million. Pfingsten said it plans to make approximately 14 platform investments. Kirkland & Ellis served as legal advisor to Pfingsten.
Pfingsten announces the closing of its fifth investment fund, Pfingsten Partners Fund V, L.P. (Fund V), with capital commitments of $382 million.
The firm will continue to invest in middle market manufacturing, distribution and business services companies with transaction values ranging from $15 to $100 million and EBITDA between $3 million and $12 million.
“We have been disciplined and consistent with our investment strategy over the past 27 years”, said Founder and Senior Managing Director, Thomas S. Bagley. “As a result, we are in the fortunate position of exceeding our $350 million fundraising target.”
Consistent with prior funds, Pfingsten will build value through operational improvements, professional management practices, global capabilities (through representative offices in China and India) and profitable business growth.
“The value we bring to middle market companies lies in our ability to take a company through the transition from its entrepreneurial roots to a professionally managed business,” said James J. Norton, Senior Managing Director. “We use very conservative financial leverage and strive to double or triple the size of our businesses through organic growth and strategic add-on acquisitions.”
“The middle market will continue to provide opportunities to create value with our operational approach to building better businesses,” said Scott A. Finegan, Managing Director. “We greatly appreciate our investors’ trust and support.”
Pfingsten activated Fund V on January 1, 2016 and plans to build a diversified portfolio of approximately 14 platform investments.
Pfingsten is an operationally focused private equity firm formed in 1989. From its headquarters in Chicago, IL and representative offices in ChangAn, China; New Delhi, India; and Chennai, India, the firm builds better businesses through operational improvements, professional management practices, global capabilities and profitable business growth rather than financial engineering. Since completing its first investment in 1991, Pfingsten has raised five investment funds with total commitments of approximately $1.3 billion and has acquired 110 manufacturing, distribution and business services companies. For more information, visit pfingsten.com.