Pfingsten targets $400 mln for Fund V

Pfingsten Partners, a Chicago-based firm, is back in the market with its fifth fund, targeting less than it raised for its prior vehicle, according to two people with knowledge of the fundraising.

Pfingsten is targeting $400 million for Fund V, according to one of the people, an LP who has seen the fundraising pitch. The GP commitment could be around $15 million, the LP said.

Thomas Bagley, Pfingsten’s founder and senior managing director, did not respond to a request for comment.

The firm focuses on companies in manufacturing, distribution and business services with annual revenue of $20 million to $150 million and EBITDA of $3 million to $12 million, according to its website.

“These guys try to dig into operations, make things more efficient, improve processes,” the LP said.

Pfingsten closed its fourth fund on $525 million in 2008, beating its $400 million target, according to a press release at the time. That fund is generating a 1.2x multiple and is not as strong a performer as some of the firm’s past funds, the LP said. “Overall, they have good numbers,” the LP said.

Bagley founded Pfingsten in 1989, according to the firm’s website. Prior to Pfingsten, Bagley was the Midwest area head of the leverage capital group at Citicorp North America Inc in Chicago, the website said.

Earlier this month, Pfingsten bought Burton Saw and Supply, which makes products and equipment for saw mills and wood product manufacturers. Burton Saw was the 16th platform investment from the firm’s Fund IV.

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