The Greenwich, Conn.-based firm is seeking $175 million for Fund II. A first close of at least $25 million is expected in July, one of the sources said. Stonington Capital Advisors is the placement agent.
Southfield’s first fund closed at $150 million in 2006, one of the persons said. Performance data was unavailable for Fund I. It’s unclear why the private equity firm waited so long between funds. Southfield could not be reached for comment.
The firm was founded in 2005 by Andy Levison, the former head of leveraged finance at DLJ. Previously, he founded Levison & Co in 2002.
Southfield targets the lower middle market. It focuses on North American companies in sectors such as healthcare, niche manufacturing, business services and consumer products and services. The firm typically invests from $10 million to $40 million equity per deal, according to its website.
In May, Southfield Capital received half of its capital back from BioPharm Communications after the company paid a dividend. BioPharm, in October, also acquired Carson Analytics.