Private equity firm Lovell Minnick Partners said it raised $750 million for its fourth institutional buyout fund, which is focused on middle-market financial services companies.
Fundraising for the Lovell Minnick Equity Partners IV fund closed above its initial target of $550 million.
Jeffrey Lovell, chairman of Lovell Minnick, said that new regulations have created opportunities for smaller, mid-sized businesses to grow quickly.
“Many of the largest institutions are handcuffed, creating opportunities for the smaller, more nimble companies,” Lovell said. “(It’s) an area where we see continued opportunity on a forward basis.”
Lovell Minnick, which has offices in Los Angeles and Philadelphia, plans to make equity commitments of between $20 million and $100 million in companies pursuing growth investments, management buyouts and succession and ownership transitions.
The new fund has invested in J.S. Held, an insurance carrier consultant, LSQ Funding, a provider of working capital solutions, and Worldwide Facilities, a wholesale insurance brokerage company.
Its investors include endowments, insurance companies, and pension funds. It also received commitments from limited partners who invested in prior funds, including Goldman Sachs Asset Management, RCP Advisors and Twin Bridge Capital Partners.
Lovell Minnick’s prior fund, Lovell Minnick Equity Partners III, secured $455 million in commitments.