Tailwind Capital Looks to Raise Next PE Fund in ’13

Tailwind Capital, which spun off in 2006 from San Francisco-based investment bank Thomas Weisel Partners, is expected to begin fundraising for its next fund in first quarter, four sources say.

New York-based Tailwind will likely seek to raise the same size fund, roughly $800 million, as its first pool, three placement agents say. The private equity firm collected $775 million with its inaugural fund in 2008. Fund I was 83% invested as of June, one placement source says. The pool has generated a net IRR of 8%, according to Dec. 31 data from CalPERS.

“They need to start raising soon,” the placement source says.

MVision is the placement agent for Tailwind’s second fund, a different source says.

Tailwind’s second fund is expected to have a hard cap of $800 million to $900 million, a third source says.

Tailwind targets middle market companies in healthcare and business & communication services. The PE firm has been in talks with its LPs for most of the year regarding its next fundraise. The investors have been looking for more liquidity, the first source says.

So far in 2012, Tailwind has made three exits that have generated $324 million, peHUB has reported. Over the summer, Investcorp acquired Archway Marketing Services for about $300 million. Tailwind, along with Black Canyon Capital and members of the management, acquired Archway in 2008 for an undisclosed amount.

SBA Communications, in June, said it would buy 3,252 tower sites in the United States and Puerto Rico from TowerCo, a Tailwind portfolio company. The deal, valued at $1.45 billion, is expected to close in the fourth quarter.

Tailwind also exited Freedom Innovations when Health Evolution Partners acquired a majority stake in February.

Officials for Tailwind couldn’t be reached for comment.

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