Fund V is nearly 44% bigger than its last pool, Sentinel Capital Investors IV LP, which collected $765 million in 2008. The fund is generating a net IRR of 40.5%, according to Dec. 31 data from CalPERS.
“Their track record is very strong so it should be a fast raise,” the placement source says.
Sentinel focuses on the lower middle market and targets companies with less than $35 million EBITDA for platform deals. Sectors include consumer, food/restaurants, healthcare and industrial. The firm typically invests up to $75 million equity per deal, according to the firm’s website.
The PE firm made five exits– Chromalox, Southern California Pizza Co., Interim Healthcare, Massage Envy, LTI Boyd and Inscape Publishing– in 2012. Last year, Sentinel also invested in Hospice Advantage, Northeast Dental Management, the Colson Group, Huddle House and National Spine & Pain Centers.
Officials for Sentinel Capital could not be reached for comment.
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