- Target for Swander Pace VI was $400 mln
- Fund V raised $350 mln in 2013
- Swander Pace closed one platform deal, one add-on and two exits this year
Swander Pace Capital needed only four months to close its latest fund at $510 million, surpassing its $400 million target.
In fact, Swander Pace clinched a $450 million first close in June, just two months after it began marketing, said Andrew Richards, a managing director. In mid-August, Swander Pace used final commitments to round out SPC Partners VI LP to $510 million, according to a statement. The private equity firm did not use a placement agent.
“Obviously we’re thrilled with the quick fundraise and to beat our target amount,” he said. “We’re appreciative of the support that investors gave us to continue our great strategy.”
Fund VI is bigger than Swander Pace’s prior fund, which collected $350 million in 2013. Richards doesn’t think the 46 percent increase is a large jump. The PE firm was focused on keeping the fund size in the $500 million range, he said. “We wanted to make sure we kept our size to the lower middle market,” he said.
Almost all commitments for Fund VI came from existing LPs, Richards said. Investors include a mix of financial institutions, pension funds, funds-of-funds and family offices, Richards said. The pool has yet to invest, Richards said.
The 20-year-old Swander Pace faced a crowded market when it began marketing in April. “It seems like every time we’re fundraising, there are more funds in the market,” Richards said. “The number of managers seems to explode.”
Swander Pace, with offices in Bedminster, New Jersey, San Francisco and Ontario, targets lower-middle-market consumer-products companies. It focuses on three themes: food and beverage, body and wellness, and home and family.
So far this year, Swander Pace completed one platform deal with its buy of Swanson Health Products and one add-on. It also sold two companies, Preferred Meals and Renew Life.
M&A in 2016 has been “slower than many would like,” Richards said. “The rest of the year will be busy,” he said.
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Arrows stick in a target with a smiley icon during the warmup for the men’s individual archery competition at the 1st European Games in Baku, Azerbaijan, on June 22 , 2015. Photo courtesy Reuters/Kai Pfaffenbach